When you lose or leave a job with employer-sponsored health insurance, COBRA (the Consolidated Omnibus Budget Reconciliation Act) gives you the right to keep that coverage temporarily. It sounds straightforward, but COBRA can be surprisingly expensive—and for many Floridians, there are better alternatives. Here's a clear-eyed look at how COBRA works in Florida.
How COBRA Works
COBRA isn't a different insurance plan—it's the right to continue your existing employer plan after your employment ends. Your coverage terms, network, and benefits remain the same. What changes is who pays the premium: instead of your employer sharing the cost, you pay the full premium yourself—your share plus the employer's share—plus an administrative fee of up to 2%.
Who Is Eligible for COBRA in Florida?
You may be eligible if you were covered under an employer group health plan and you experience one of these "qualifying events":
- Termination of employment (voluntary or involuntary, except for gross misconduct)
- Reduction in hours below full-time eligibility
- Divorce or legal separation (for a covered spouse)
- Death of the covered employee (for dependents)
- A dependent child aging off the plan (at 26)
- Medicare enrollment of the covered employee (for dependents)
COBRA applies to employers with 20 or more employees. Florida also has a "mini-COBRA" law for smaller employers (2–19 employees), which provides a shorter continuation period of up to 18 months.
COBRA Duration
| Qualifying Event | COBRA Duration |
|---|---|
| Job loss or reduced hours | 18 months |
| Employee becomes eligible for Medicare | 36 months (for spouse/dependents) |
| Divorce, legal separation, or death of employee | 36 months (for spouse/dependents) |
| Dependent child loses eligibility | 36 months |
| Employee becomes disabled within 60 days of COBRA start | 29 months |
What COBRA Costs in Florida
COBRA premiums equal the full group premium (employer + employee shares) plus 2%. Average employer-sponsored single coverage in Florida costs around $700–$900/month in total premium; family coverage typically runs $1,800–$2,400/month. When you take COBRA, you pay the entire amount.
Example: If your employer was paying $600/month and you were paying $150/month, your COBRA premium would be $765/month ($750 total + 2% fee)—a $615/month increase.
For many Floridians who've lost employer coverage, an ACA marketplace plan—especially with a subsidy—will cost significantly less than COBRA. Losing employer coverage triggers a 60-day Special Enrollment Period on the marketplace. Don't automatically choose COBRA without comparing.
The 60-Day Election Period
After leaving employment, you have 60 days to elect COBRA. You also have a 60-day Special Enrollment Period to join a marketplace plan. You can take time to compare costs—but once you elect COBRA, you're committing to those premiums. Coverage is retroactive to the date you lost employer coverage, so you can wait until you actually need care before deciding.
When COBRA Makes Sense
COBRA is worth the cost when: you have expensive ongoing medical care mid-year and have already met your deductible on the employer plan; you're in active treatment with providers only in the employer plan's network; or you're transitioning to Medicare within a few months and want continuity of care. Otherwise, a marketplace plan is usually more cost-effective.
Don't decide between COBRA and marketplace coverage without comparing actual costs. Get a free comparison from a licensed Florida advisor, or use Florida Plan Finder to estimate your marketplace costs.