The Consolidated Omnibus Budget Reconciliation Act, commonly known as COBRA, is a federally mandated program through which you can retain your employer's policy for up to 18 months. If you do elect COBRA coverage, be prepared to pay significantly higher monthly premiums; you’ll be required to cover the amount your employer was contributing plus a 2% administration fee. COBRA often isn’t worth it, as most unemployed individuals can find a much more affordable policy on the marketplace.