COBRA provides you the option of temporarily continuing your company’s group health coverage when you experience a “qualifying event” such as when you quit a job, if your job is eliminated or if your hours are significantly reduced. You can’t continue coverage if you’re released for gross misconduct.

The coverage is available to you and your spouse and/or dependents if they were covered under your group health plan at least one day before the qualifying event occurred. If you choose to buy the coverage, you must pay the entire premium amount and, often, an additional administrative fee.

Coverage generally lasts 18 months. In some cases, you may qualify for COBRA if your hours have been cut to the point that you've lost your health benefits. When you leave a job, plan administrators must notify you of your eligibility and give you 60 days to accept or reject the coverage.