What to Expect from COBRA
COBRA is not in and of itself a health care plan, but rather a means to continue previously held health care coverage. For this reason, workers must pay premiums for their insurance, even if before their company covered all costs associated with the plan. Workers are never required to pay more than 102% of what their employers' paid (the full amount of the premium plus a 2% administrative charge), but this is still, generally speaking, much more than they would have paid while employed. It is usually less, however, than having to purchase a new, individual insurance plan.
Coverage in COBRA is effective the day the qualifying employee would have otherwise lost their benefits, so they are never without insurance, provided they pay their premiums on time. If any employee qualifies for COBRA and finds the premiums too high, they have the option of ‘downgrading’ to a lesser form of coverage - for example, one that does not include dental, or that only covers the primary employee and not dependents.