COBRA Alternatives in New Jersey (2026)

Your options after leaving a job in New Jersey

When you leave a job in New Jersey, you usually have three paths: keep your employer plan through COBRA or state continuation, buy a plan on Get Covered New Jersey, or move to NJ FamilyCare if your income has dropped enough. Comparing all three before your old coverage ends can save you a lot of money.

Federal COBRA applies to employers with 20 or more workers. If your employer is smaller (2 to 50 employees with an insured plan), New Jersey law gives you a similar right to stay on the plan for up to 18 months. You must elect it in writing within 30 days, and you can be charged up to 102% of the full premium, which is often far more than you paid as an employee.

Losing job-based coverage opens a special enrollment period on Get Covered New Jersey, and you generally have 60 days after the loss to pick a plan. Exchange plans are the only way to get federal tax credits and New Jersey Health Plan Savings, so a lower income after a layoff can make an exchange plan cheaper than COBRA.

If your monthly household income is now at or below about $1,836 for a single person, you may qualify for NJ FamilyCare, which you can apply for at any time of year. Keep in mind that New Jersey expects you to have coverage, so avoid a gap of three months or more.

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.

New Jersey small employer continuation (N.J.S.A. 17B:27A-27)

If you work for a small New Jersey employer that is too small for federal COBRA, state law still lets you keep the group plan after you leave a job for reasons other than cause or your hours drop below 25 a week. You must elect it in writing within 30 days, and the premium can be up to 102% of the full group cost. It works much like COBRA, but it is a state rule tied to the insured small group plan rather than the federal law.

• Who it covers: Insured small employer plans (employers with 2 to 50 employees) whose employers are not subject to federal COBRA, which generally means employers with fewer than 20 employees.
• How long: Up to 18 months for the employee (29 months with a qualifying disability); up to 36 months for a spouse or child after death, divorce or loss of dependent status

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 New Jersey, Get Covered New Jersey is New Jersey’s official, state-run health insurance marketplace. We’re an independent, licensed insurance agency, not part of Get Covered New Jersey or any government agency, and we can help you compare Marketplace plans and enroll. New Jersey runs its own exchange with a three-month open enrollment, longer than HealthCare.gov states. Only plans bought through Get Covered New Jersey qualify for federal tax credits and the state's own New Jersey Health Plan Savings subsidy; for the 2026 plan year you had to enroll by December 31 for a January 1 start.

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 at the end of 2025. The House passed a three-year extension in January 2026, but the Senate did not follow, so as of October 2026 they have not been restored for 2026 or 2027. That means the federal credit again stops at 400% of the poverty level, and New Jersey enrollees saw large net premium increases in 2026.

If your income dropped

Adults 19 to 64 can qualify for NJ FamilyCare based on income alone if household income is at or below 138% of the poverty level, which is about $1,836 a month for a single person under 2026 guidelines. You must be a New Jersey resident and a U.S. citizen or qualifying immigrant. Starting January 1, 2027, most expansion adults must show 80 hours a month of work, school, training or volunteering (unless exempt) and renew every six months.

What coverage costs