What is COBRA (Consolidated Omnibus Budget Reconciliation Act)?

Companies with 20+ employees are legally responsible to offer COBRA coverage to their workers. COBRA allows employees and any enrolled family members who lose their health benefits the ability to choose to continue their health, dental, and vision benefits provided by their group under specific circumstances such as voluntary or involuntary job loss, hour reduction, death, divorce, and other qualified life events.

Pros:

Employees have 60 days to enroll in COBRA coverage, which is plenty of time to decide.
COBRA can last up to 18 months for the individual and enrolled dependents. This creates security for employees who are not offered or not yet eligible for benefits at their next job.
Employer-sponsored plans are typically not available on an individual-level, which means you have may have better options.

Cons:

In most cases, you will be responsible for 100% of the premium because the employer will no longer contribute to the cost.
COBRA coverage can be expensive and sometimes unaffordable, especially if one would otherwise qualify for a subsidy.
COBRA coverage has an expiration date which makes it a temporary solution.

COBRA letters are usually administrated by your previous HR department or your benefit administrators. If you did not receive a COBRA and believe you should have, please reach out to your previous employer.