COBRA
A federal law that lets you keep your employer's health plan after you leave the job or lose coverage, usually for up to 18 months, at up to 102% of the full premium.
COBRA applies to group health plans at private employers with 20 or more employees and to state and local government plans. You, your spouse and your children can each elect it after a job loss, cut hours, divorce or another qualifying event.
You keep the same plan, doctors and deductible progress, but you can be charged the full premium, including the part your employer used to pay, plus a 2% fee. You have at least 60 days to elect it.
Example
A plan costs $650 a month in total: $500 from the employer and $150 from the worker. On COBRA, the worker can be charged $650 × 1.02 = $663 a month.