Colorado employees who lose their job-based health coverage usually assume COBRA is their only option, and then open the first bill. A Colorado resident who worked at a small business often has a second path federal law does not offer: Colorado's own continuation of coverage law.
Medically reviewed by Jawad Arshad, MD, FACEP. Last reviewed September 27, 2026.
What Is Colorado's COBRA Alternative for Small Employers?
Colorado Revised Statute 10-16-108 requires every Colorado group health plan, regardless of employer size, to offer continuation coverage to an employee who loses eligibility. Federal COBRA only applies to employers with 20 or more employees, so a Colorado employee at a small business with fewer than 20 workers relies on this state law instead, not on federal COBRA.
Colorado's continuation coverage lasts up to 18 months after the loss of coverage, or until the person becomes eligible for other group coverage, whichever comes first. To qualify, a Colorado employee must have carried continuous coverage under the group plan for at least six months before termination and must elect continuation within 30 days of losing coverage, or 60 days if the employer failed to send notice.
How Much Does COBRA Cost in Colorado?
Colorado continuation coverage costs the same as federal COBRA in practice: the full group premium, including the portion an employer previously paid, plus in some cases a small administrative charge. Colorado law requires the employer to disclose this monthly amount in writing, but it does not cap the rate below full group cost.
Table: Colorado post-employment coverage options, 2026 to 2027
| Option | Who Qualifies | Duration | Typical Cost |
|---|---|---|---|
| Federal COBRA | Employers with 20+ employees | Up to 18 months | Full group premium plus up to 2% admin fee |
| Colorado state continuation (C.R.S. 10-16-108) | Any Colorado group plan, any employer size | Up to 18 months | Full group premium, employer discloses amount |
| Connect for Health Colorado marketplace | Any Colorado resident | Ongoing, annual re-enrollment | Averaged $187/month after federal subsidy in 2026 |
Worked example: A Colorado employee whose employer-sponsored family plan cost $1,850 a month total, with the employer previously covering $1,400 of that, would owe the full $1,850 a month under either COBRA or Colorado state continuation. The same household applying through Connect for Health Colorado with a household income near the subsidy threshold could see a plan average closer to $187 a month after federal tax credits, based on 2026 Connect for Health Colorado enrollment data, before accounting for plan design differences.
What Are the 2027 Marketplace Alternatives to COBRA in Colorado?
Connect for Health Colorado's open enrollment for 2027 coverage runs November 1, 2026 through January 15, 2027, with a December 15, 2026 deadline for coverage starting January 1. In the 2026 plan year, 277,238 Coloradans enrolled through the exchange, with about 70% receiving a federal subsidy and 17% paying under $10 a month in premium, according to healthinsurance.org's tracking of state marketplace data.
Six insurers will offer 2027 coverage in Colorado: Denver Health Medical Plan, SelectHealth, Kaiser Permanente, Anthem, Rocky Mountain HMO, and new entrant Colorado Access, while Cigna is exiting the marketplace. The weighted average proposed rate increase for 2027 is about 12.7%, with individual carrier requests ranging from 9.5% to 23%.
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Why Are Colorado Small Group Premiums Rising Too?
Colorado's small group health insurance market, the market most COBRA-alternative shoppers just left, is not spared from the same cost pressure. Five insurers requested an average 13.6% premium increase for the 2026 small group market, affecting about 172,000 Coloradans, according to the Colorado Division of Insurance. Individual carrier requests ranged from 3.6% (Kaiser Permanente) to 16.7% (UnitedHealthcare).
Colorado Senate Bill 24-073 also redefined "small employer" from 1 to 100 employees down to 1 to 50 employees, with employers of 51 to 100 workers given up to five years to transition into the large-group market. A Colorado employee at a business moving from small-group to large-group coverage may see different post-employment continuation rules apply at the next renewal, since large-group COBRA and Colorado continuation both still apply but plan design can change.
Is Membership-Based Coverage a Real Alternative to COBRA in Colorado?
Membership-based coverage, sometimes marketed as a health share or healthcare sharing ministry, is not insurance and carries no regulatory guarantee that medical bills will be paid, unlike COBRA, Colorado state continuation, or a marketplace plan. A Colorado resident considering this route should read the membership guidelines directly rather than assuming it functions like COBRA replacement insurance. Summit Health Benefits' <a href="/plans/individuals-families">individuals and families plan page</a> discloses membership terms for anyone comparing this option against COBRA.
Sources
Sources cited in this article: Colorado Revised Statutes Section 10-16-108, full text via Colorado Public Law (2023 codification); healthinsurance.org Colorado marketplace tracking, citing Connect for Health Colorado 2026 enrollment data and 2027 rate filings; Colorado Division of Insurance news release on 2026 small group premium filings and Senate Bill 24-073; U.S. Department of Labor COBRA continuation coverage rules.
See plans available in Colorado
A licensed agent reviews Connect for Health Colorado marketplace plans and Summit Health Benefits membership options side by side with what COBRA would cost you.