No, they will not be eligible for COBRA if you voluntarily cancel your family from your group health plan. Even if they were, it would not save you money. You would actually be responsible for paying the full $832, plus a 2% administration fee. However, you do have options. You may consider looking into a private Individuals policy. There are many insurance companies that offer this type of coverage, and Blue Cross Blue Shield is one of them. The first thing to do is contact BCBS and ask them about their individual' health insurance products and get a quote for your family. The word 'individual' health insurance is confusing and makes it seem like you can only get this type of coverage for one person but it does include options for covering an entire family or just your wife and children. A policy that includes just your wife and children would be called a 'subscriber and children' policy. Most insurance companies have a special rate for this situation, regardless of the number of children. Since your employer is paying 100% of your premium, you will want to stay on your group health plan. Now keep in mind that a private family health insurance policy requires an application and a review of the health status of each family member. If any of your family members have a pre-eisting medical condition, you may need to keep that family member on your Small Business plan in order to maintain their continued coverage because most insurance companies have waiting periods for pre-eisting conditions. Since you do not want to have a lapse of coverage for any member of your family, it is imperative that you begin applying for family health insurance with various insurance companies as soon as possible. The process can take several weeks, especially if the insurance company requests medical records for any of your family members.'