Glossary
COBRA
The right to keep your employer health plan after leaving a job, by paying the full premium yourself.
COBRA lets qualified beneficiaries continue group health coverage after events such as termination or a reduction in hours. A plan may charge up to 102% of the applicable premium — the entire cost of the coverage, employer share included, plus a 2% administrative charge — which is why the figure surprises people used to a payroll deduction. The election period cannot end before 60 days after the later of coverage loss or the COBRA notice, and coverage generally runs up to 18 months, longer in specific circumstances.