An individual is eligible for COBRA or Consolidated Omnibus Budget Reconciliation Act of 1985, if they have been terminated by their employer and the employer has 20 or more employees who are receiving group  Medical Insurance .  COBRA is a continuation of their employer group insurance. If an employee quits their place of employment, you are not eligible for COBRA. If you have a preexisting condition that makes you ineligible for an individual family plan, it is in your best interest to take the COBRA option.  An individual family plan tends to be more affordable than the COBRA Health Insurance Premiums.