COBRA Alternatives in Arizona (2026)

Your options after leaving a job in Arizona

If you leave a job at a company with 20 or more employees, federal COBRA usually lets you keep the same plan for a while, but you pay the full premium plus a fee. Arizona adds its own continuation law for smaller employers with fewer than 20 workers whose group plan is fully insured, giving you up to 18 months of coverage.

Under the Arizona law, your employer must send a notice within 30 days of your last day of coverage. You then have 60 days to elect in writing and 45 days after that to pay the first premium. The cost is the full group premium plus up to 5%, so it is often a big jump from what came out of your paycheck.

Losing job-based coverage also opens a 60-day special enrollment period for Marketplace plans. Compare the COBRA or state continuation price with Marketplace options, especially if your income for the year will be lower, because a lower income can mean a premium tax credit.

If your income has dropped sharply, check AHCCCS. Adults with household income up to about 138% of the federal poverty level can qualify, and you can apply at any time of year through Health-e-Arizona Plus.

How federal COBRA works

Federal COBRA lets you keep your former employer’s group plan if the employer had 20 or more employees. Coverage usually lasts up to 18 months, and you can be charged the full premium plus a 2% administrative fee, because your employer stops paying its share.

You generally have 60 days from your election notice to choose COBRA. Coverage is retroactive, so some people wait and only elect it if they need care during that window. Talk to an agent before relying on that, because missing the deadline ends the option.

Arizona state continuation (A.R.S. 20-2330)

If you work for a small Arizona employer that is too small for federal COBRA, state law lets you keep the group plan for up to 18 months. You pay the full premium plus an administrative fee of up to 5%, compared with up to 2% under federal COBRA. You have 60 days from the employer's notice to elect in writing and 45 days after that to make the first payment.

• Who it covers: Employees of small employers that averaged at least 1 but fewer than 20 eligible employees in the prior calendar year, if the employee was on the group plan for at least three months before the job ended. It applies only when federal COBRA does not.
• How long: 18 months (an extra 11 months may be available for a disabled dependent)

Marketplace plans and your special enrollment period

Losing job-based coverage opens a 60-day special enrollment period, so you don’t have to wait for open enrollment. In Arizona, HealthCare.gov is the federal government’s official marketplace for Arizona. We’re an independent, licensed insurance agency, not part of HealthCare.gov or any government agency, and we can help you compare Marketplace plans and enroll. Arizona uses the federal Marketplace, so the federal dates apply. To have coverage start January 1, 2027, pick a plan by December 15, 2026; a federal rule that would have shortened the window was blocked in court and does not apply this fall.

Marketplace premiums are based on your expected income for the year, not last year’s. If you’re between jobs, a lower income estimate can mean a much larger premium tax credit. The extra federal premium tax credits ended on December 31, 2025, and Congress has not brought them back. For 2026, households earning more than 400% of the federal poverty level get no premium tax credit at all, and those who still qualify get less help than in 2025. In Arizona, the average net premium Marketplace enrollees paid roughly doubled, from $113 a month in 2025 to $229 a month in 2026.

If your income dropped

Adults 19 to 64 without children can qualify for AHCCCS with household income up to about 138% of the federal poverty level. Arizona was one of the first states to expand Medicaid in 2014. Starting January 1, 2027, most adults in this group will need to work, volunteer or attend school at least 80 hours a month (with exemptions for people with disabilities, caregivers and others) and renew coverage every six months.

What coverage costs