What are COBRA and Colorado Continuation?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that gives certain employees and their dependents the right to choose to continue group health coverage (e.g. health coverage through their employer) provided by their group health plan for a limited period of time under certain circumstances, such as job loss or a reduction in work hours. Keep in mind:

  • If you lose job-based health insurance, you do not have to enroll in COBRA coverage. This circumstance is considered a Life Change Event, which means you will be eligible for a Special Enrollment Period. During this period, you can shop for a new health insurance plan.
  • Colorado Continuation and Conversion was created by the Colorado legislature to fill gaps left by COBRA. If you work for a small business, you may be offered Colorado Continuation and Conversion coverage.
  • Connect for Health Colorado does not administer COBRA or Colorado Continuation. Learn more about COBRA and Colorado Continuation by visiting the Department of Labor’s website.