Adults under 65 who lose job-based health coverage usually need to know one thing first: do I even have a COBRA option? Under the 2026 Department of Labor rules, three tests decide it. The employer's group health plan must be subject to federal COBRA, which generally means an employer with 20 or more employees in the prior year. You must have been covered by that plan the day before a qualifying event. And the event must be one the law recognizes, with job loss for gross misconduct excluded. The same tests apply to 2027, because the statute has no year-based changes.
This page answers who qualifies. For what COBRA is and what it costs, see what COBRA insurance is and how much it costs. For how many months it lasts, see how long COBRA lasts. If you find out you are not eligible, the last section lists the options that replace it, led by the 60-day marketplace special enrollment period.
Coverage Breakdown
Direct answer: who is eligible for COBRA (2026-2027)
It depends. Federal COBRA covers you only if your employer's group health plan is subject to the law (generally 20 or more employees in the prior year, and not a federal or church plan), you were enrolled the day before a qualifying event such as job loss, fewer hours, divorce, or a child aging off the plan, and the event was not gross misconduct.
The 20-employee rule: how employers are counted (2026)
The 20-employee rule decides whether your employer must offer COBRA at all. The Department of Labor says in its 2026 guidance that COBRA generally applies to private-sector group health plans of employers that had at least 20 employees on more than 50 percent of their typical business days in the previous calendar year. Full-time and part-time workers are both counted. A part-time worker counts as a fraction of a full-time worker: hours worked divided by the hours needed to be full time. At a 40-hour full-time standard, someone working 20 hours counts as one half and someone working 16 hours counts as four-tenths.
Small employers are the main place the rule leaves people without a federal right. Employers below the threshold fall outside the general requirement. The Department of Labor adds that many states have similar laws, often called mini-COBRA, which apply to insured health plans and may cover employers with fewer than 20 employees. Self-funded plans are generally outside state insurance law, so the answer can differ even within one state. Ask your state insurance commissioner's office whether continuation coverage is available to you.
Who counts as a qualified beneficiary: employees, spouses, ex-spouses, and children (2026)
Qualified beneficiaries are the people covered under the job-based plan the day before a qualifying event, and each one holds an independent COBRA right. Under the Department of Labor's 2026 worker FAQ, that means the covered employee, the employee's spouse or former spouse, and dependent children. A child born to or placed for adoption with the covered employee during the COBRA period also becomes a qualified beneficiary. Employers, agents, independent contractors, and directors can qualify if they were covered under the plan on similar terms to other employees.
Divorce shows how the rights split. After a divorce or legal separation, the former spouse can elect COBRA on their own, for up to 36 months, but only if they lose coverage because of it. The Department of Labor says the covered employee or the former spouse must notify the plan within 60 days, and a court decree is required: filing papers or starting the process does not count. A child who ages out of dependent status, often at 26 under the Affordable Care Act, has the same 60-day notice duty. Domestic partners are not listed as qualified beneficiaries in the Department of Labor FAQ, so ask your plan whether it extends the option voluntarily.
Qualifying events and the gross misconduct exclusion (2026)
A qualifying event is a change that would otherwise end your job-based coverage. For the employee, the 2026 Department of Labor list is job loss for any reason other than gross misconduct, and a reduction in hours. For a spouse and dependent children, the list adds the employee's death, divorce or legal separation, and the employee becoming entitled to Medicare, in limited situations. For a dependent child, it also includes losing dependent child status under the plan. If an event does not cause you to lose coverage, it does not create a COBRA right.
Gross misconduct is the one reason for firing that removes the employee's own COBRA right. The Department of Labor materials in 2026 do not define the term, so whether conduct qualifies is decided case by case by the employer and, if challenged, a court. An ordinary firing for poor performance, attendance, or a layoff is not gross misconduct, and those employees remain eligible. When an employee is fired for gross misconduct, the spouse and children lose their own right to COBRA through that event as well. Fraud can also end COBRA after you have elected it, if the same conduct would end an active employee's coverage.
Medicare, ACA-compliant plans, and other limits on COBRA eligibility (2026)
Eligibility can also end after you elect. In 2026 the Department of Labor lists new group health coverage and Medicare entitlement after electing COBRA among the reasons the plan can end your continuation coverage. For adults under 65, a new employer plan is the common case, and an ACA-compliant group plan cannot impose a preexisting condition exclusion, so moving off COBRA to a new job plan does not reset your protection for existing health problems. Medicare matters mainly for people on disability or those nearing 65: Original Medicare Part A and Part B timing, and later Medicare Advantage, Medigap, or Part D choices, should be checked before relying on COBRA. Marketplace plans also cover the essential health benefits, which gives a baseline to compare.
How to confirm you are eligible and elect COBRA (2026-2027)
Confirming eligibility follows a notice sequence set by the Department of Labor in 2026. After a job loss, reduced hours, death, or Medicare entitlement, the employer has 30 days to notify the plan. The plan then has 14 days to send you an election notice. For divorce, legal separation, or a child losing dependent status, you or a family member must notify the plan, and the plan cannot set a deadline shorter than 60 days. Once the election notice arrives, you have 60 days to elect, counted from the later of the date coverage ends or the date the notice is provided. If you never receive a notice, contact the plan administrator in writing.
- Employer notifies the plan: within 30 days of job loss, reduced hours, death, or Medicare entitlement
- You notify the plan of divorce, legal separation, or a child's loss of dependent status: the plan's deadline can be no shorter than 60 days
- Plan sends the election notice: within 14 days of the notice of the event
- You elect: within 60 days, and the first payment is due 45 days after you elect
Alternatives if you are not eligible for COBRA (2026-2027)
Not having a federal COBRA right does not leave you without options, and several are time-limited. Losing job-based coverage opens a 60-day special enrollment period on the marketplace, so a worker at a small employer with no COBRA and no state continuation law usually goes straight there. Open enrollment for 2027 marketplace coverage runs November 1, 2026 to January 15, 2027; check HealthCare.gov for the current deadline for a January 1 start.
- Marketplace plan through a special enrollment period: 60 days after you lose job-based coverage, at HealthCare.gov or your state exchange. Premium tax credits depend on income and coverage year; the 400% of poverty line is $62,600 for one person for 2026 coverage and $63,840 for 2027 coverage.
- Spouse's or new employer's group plan: losing coverage generally opens a special enrollment period, which the Department of Labor says must be requested within 30 days.
- State continuation (mini-COBRA): if your employer has fewer than 20 employees and an insured plan, ask your state insurance department whether you have continuation rights.
- Medicaid or CHIP: no enrollment window, so you can apply any month if your income is within your state's limit. See the Medicaid income limits page.
Frequently Asked Questions
Does COBRA apply to employers with fewer than 20 employees?
Not federal COBRA. The Department of Labor says COBRA generally applies to employers with 20 or more employees in the prior year. Many states have mini-COBRA laws that may cover smaller employers with insured plans, so ask your state insurance department. If neither applies, a marketplace special enrollment period is the usual route.
How are part-time employees counted toward the 20-employee rule?
As fractions. The Department of Labor counts full-time and part-time workers, with each part-timer equal to their weekly hours divided by the full-time hours. At a 40-hour standard, 20 hours a week counts as one half and 16 hours counts as four-tenths. The test looks at the prior calendar year, on more than half of typical business days.
Can my spouse and children get COBRA if I lose my job?
Yes, if they were covered under the plan the day before. A spouse and dependent children are qualified beneficiaries when your job ends for any reason other than gross misconduct, or your hours are cut. Each has an independent right to elect, so your spouse can elect COBRA even if you choose not to.
Can my ex-spouse get COBRA after a divorce?
Yes, if the divorce causes loss of coverage under your plan. The Department of Labor says you or the former spouse must notify the plan within 60 days, and a court decree is required. The former spouse can generally keep COBRA for up to 36 months, and the election runs on its own 60-day clock.
Am I eligible for COBRA if I was fired?
Usually yes. Termination for any reason other than gross misconduct is a qualifying event, so firing for performance or attendance still qualifies. The Department of Labor does not define gross misconduct, so the employer decides first and a court can review it. A layoff qualifies, and so do cut hours.
Can I get COBRA if I quit my job?
Yes, if you lose group coverage because of it. The Department of Labor lists job loss for any reason other than gross misconduct, and that includes resigning. Voluntarily leaving COBRA later, or stopping payments yourself, does not open a marketplace special enrollment period, so decide before you elect.
Are federal employees eligible for COBRA?
No. The Department of Labor says COBRA does not apply to plans sponsored by the federal government or by churches and certain church-related organizations. It does apply to state and local government plans. Federal employees have separate continuation rules through their agency, so ask your human resources office.
What if I am not eligible for COBRA?
Check the marketplace first. HealthCare.gov gives 60 days to enroll after losing job-based coverage. A spouse's or new employer's plan may allow special enrollment within 30 days, and Medicaid has no enrollment window. Also ask your state insurance department about mini-COBRA if your employer has fewer than 20 employees.
