COBRA and Coverage Gaps

Part of the Learning Center · included with every paid plan

Health coverage can break at the worst possible moment. A job ends, hours drop, or a transition between employers leaves a gap right when a growing family needs coverage most. COBRA, the federal law that lets most workers keep their employer plan temporarily, exists for exactly this situation. It preserves the same plan, the same network, the same benefits. It also shifts the full premium cost to the worker, a number most families have never seen. The marketplace offers an alternative with income-based subsidies that COBRA cannot match. Choosing between them is one of the highest-return administrative decisions a growing family faces. This guide maps both paths.

What this guide covers

· The coverage gap landscape
· How COBRA works
· What COBRA actually costs
· The election window and retroactivity
· The marketplace alternative
· When the employer is too small for COBRA
· Having a baby during a coverage gap
· Where the plan comes in

The full guide comes with your plan.

Every Mothers Plan includes the Learning Center: the knowledge behind each task on your personalized, dated timeline.

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Sources this guide is verified against

U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers: https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-workers
U.S. Department of Labor, An Employee's Guide to Health Benefits Under COBRA: https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra
U.S. Department of Labor, Continuation of Health Coverage (COBRA): https://www.dol.gov/general/topic/health-plans/cobra
U.S. Department of Labor, HIPAA Fact Sheet: https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/hipaa-archived-version
CMS, COBRA Continuation Coverage Fact Sheet: https://www.cms.gov/cciio/programs-and-initiatives/other-insurance-protections/cobra_fact_sheet
CMS, Understanding COBRA Job Aid (May 2026): https://www.cms.gov/marketplace/technical-assistance-resources/understanding-cobra.pdf
CMS, COBRA Coverage and the Marketplace: https://www.cms.gov/files/document/cobra-coverage-marketplace.pdf
CMS, HIPAA Helpful Tips: https://www.cms.gov/regulations-and-guidance/health-insurance-reform/healthinsreformforconsume/downloads/hipaa_helpful_tips_rev_1.pdf
KFF, 2025 Employer Health Benefits Survey: https://www.kff.org/health-costs/2025-employer-health-benefits-survey/
KFF, Annual Family Premiums for Employer Coverage Rise 6% in 2025: https://www.kff.org/health-costs/annual-family-premiums-for-employer-coverage-rise-6-in-2025-nearing-27000-with-workers-paying-6850-toward-premiums-out-of-their-paychecks/
KFF, Medicaid and CHIP Income Eligibility Limits for Pregnant Women: https://www.kff.org/medicaid/state-indicator/medicaid-and-chip-income-eligibility-limits-for-pregnant-women/
KFF, Medicaid Postpartum Coverage Extension Tracker: https://www.kff.org/medicaid/issue-brief/medicaid-postpartum-coverage-extension-tracker/
HealthCare.gov, If You Lose Job-Based Health Insurance: https://www.healthcare.gov/have-job-based-coverage/if-you-lose-job-based-coverage/
HealthCare.gov, COBRA Coverage When Unemployed: https://www.healthcare.gov/unemployed/cobra-coverage/
HealthCare.gov, Special Enrollment Period: https://www.healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/
HealthCare.gov, Pre-Existing Conditions: https://www.healthcare.gov/health-care-law-protections/pre-existing-conditions/
TriNet, What Are State Mini-COBRA Laws: https://www.trinet.com/insights/what-are-state-mini-cobra-laws

Every figure checked against official sources; last reviewed August 2026. Mothers Plan provides information and organization, not legal, tax, financial, or medical advice.