COBRA Alternatives in Virginia (2026)

Your options after leaving a job in Virginia

If you leave a job in Virginia, start by checking which kind of continuation you are offered. Larger employers must offer federal COBRA, which usually lasts 18 months. If your employer is not subject to COBRA and your plan is insured, Virginia law lets you keep the same group coverage for up to 12 months if you were on the plan for the 3 months before it ended.

Either way, you pay the full premium yourself. Under state continuation that is the group rate plus a fee of no more than 2%. You must apply within 31 days after you get the notice and no later than 60 days after your coverage ends.

Losing job-based coverage also opens a special enrollment period on Virginia's Insurance Marketplace. You can apply up to 60 days before or 60 days after the loss. A Marketplace plan with a tax credit based on your new, lower income is often cheaper than paying the full cost of continuation.

If your income dropped sharply, check Medicaid too. Adults 19 to 64 with income under 138% of the poverty level, about $1,836 a month for one person in 2026, can qualify, and you can apply any time of year.

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.

Virginia state continuation (Code of Virginia § 38.2-3541)

If your employer's plan is not subject to federal COBRA, Virginia law lets you keep the same group coverage for up to 12 months with no health questions. You pay the full group rate plus a fee of no more than 2%, and you must apply within 31 days of the notice and no later than 60 days after coverage ends. Federal COBRA usually lasts 18 months, so state continuation is shorter, and it does not apply if you were fired for gross misconduct.

• Who it covers: Insured group hospital, medical and major medical policies issued in Virginia, when the employer is not already required to offer federal COBRA (generally smaller employers). You must have been covered under the group for the 3 months before your coverage ended.
• How long: 12 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 Virginia, Virginia's Insurance Marketplace is Virginia’s official, state-run health insurance marketplace. We’re an independent, licensed insurance agency, not part of Virginia's Insurance Marketplace or any government agency, and we can help you compare Marketplace plans and enroll. Virginia runs its own state-based Marketplace, which replaced HealthCare.gov starting with 2024 coverage. For 2027, a new state program called Virginia Premium Savings adds help on top of federal tax credits for incomes between 138% and 250% of the poverty level.

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 that began in 2021 expired on December 31, 2025. The original ACA tax credits are still available, but help is now smaller for many people, and households above 400% of the poverty level generally no longer qualify, so many Virginians saw higher net premiums in 2026.

If your income dropped

Virginia expanded Medicaid in January 2019. Adults ages 19 to 64 without Medicare can qualify with income below 138% of the poverty level, which in 2026 is about $1,836 a month for a single adult. Starting January 2027, most expansion adults must show 80 hours a month of work, school, volunteering or similar activity unless exempt, and eligibility will be checked every 6 months.

What coverage costs