COBRA Alternatives in Colorado (2026)

Your options after leaving a job in Colorado

When you leave a job in Colorado, you usually have three paths: federal COBRA, Colorado state continuation, or a new individual plan. Federal COBRA generally applies to employers with 20 or more employees. Colorado's continuation law covers fully insured group plans and gives up to 18 months of the same coverage if you were on the plan for at least six months.

Both options make you pay the full premium, including the share your employer used to cover, so the bill can jump. Colorado's election window is short: you must sign up in writing and pay within 30 days after your job ends, or within 60 days if your employer never sent the notice.

Losing job-based coverage also opens a special enrollment period for Marketplace plans, usually for 60 days. If your income for the year will be lower without a paycheck, you may qualify for federal tax credits plus Colorado Premium Assistance, which can make an individual plan cost less than COBRA.

If your income has dropped sharply, check Health First Colorado. Adults without dependent children can qualify with income up to 138% of the poverty level, though starting in 2027 most adults 19 to 64 must also meet a work or activity requirement.

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.

Colorado state continuation (C.R.S. 10-16-108)

If you lose job-based coverage because you leave your job, the employee dies, or your marital or civil union status changes, you can keep the same group plan for up to 18 months or until you become eligible for other group coverage. You pay the full premium, including the part your employer used to pay. You must elect it in writing and pay within 30 days after termination (60 days if your employer never sent the notice), which is a shorter window than federal COBRA's 60-day election period.

• Who it covers: Employees on a fully insured employer group health plan issued by an insurance carrier who were covered for at least six months in a row before losing coverage. It matters most for workers at small employers that are not subject to federal COBRA.
• How long: Up to 18 months

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 Colorado, Connect for Health Colorado is Colorado’s official, state-run health insurance marketplace. We’re an independent, licensed insurance agency, not part of Connect for Health Colorado or any government agency, and we can help you compare Marketplace plans and enroll. Colorado runs its own exchange. For 2027 coverage, enroll by December 15, 2026 for a January 1 start; enrollments from December 16 to January 15 start February 1. The state adds its own premium help (Colorado Premium Assistance) and a reinsurance program that lowers full-price premiums.

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 enhanced federal premium tax credits expired after 2025, and Congress had not restored them as of September 2026. Federal help again stops at 400% of the federal poverty level, and the Colorado Division of Insurance estimated the average net premium for subsidized enrollees roughly doubled for 2026 (a 101% average increase).

If your income dropped

Colorado expanded Medicaid, so adults 19 to 64 without dependent children can qualify with income up to 138% of the federal poverty level. Starting January 1, 2027, most adults in this age group must also show 80 hours a month of work, school, volunteering or a work program, or at least $580 a month in earnings, when they apply or renew.

What coverage costs