COBRA can cost a lot, and it isn't necessarily the right choice for you. Losing your insurance qualifies as a life event that opens other coverage possibilities. Let's look for a plan that works with your budget.
There are other coverage choices available, but you need to pay attention to the time you have to act.
If your employer health insurance or COBRA ends, you generally have 60 days to sign up for another plan outside Open Enrollment. This is called a special enrollment period (SEP), and it's a right provided by law. Make sure you use that opportunity before it expires.
With COBRA, you keep the health plan you had through work, but you're responsible for 102% of the premium. That includes what you previously paid, the portion your employer covered, and a 2% administrative charge. An ACA marketplace plan may cost less, particularly when you're eligible for premium subsidies.
When you lose existing health insurance, that qualifying life event can open the door to marketplace coverage with financial assistance. Depending on where your income falls, you might qualify for subsidies that make your monthly premiums considerably more affordable.
Once your health coverage ends, you have a 60-day period to enroll in another plan. Leaving everything until day 59 puts you in a risky position. Starting earlier gives you more breathing room to compare plans and choose coverage that makes sense.
What you need to know right now.
A special enrollment period gives you an opportunity to purchase health insurance outside the usual Open Enrollment dates. It typically lasts 60 days, and losing employer-sponsored insurance or COBRA can qualify you. After that window closes, you generally must wait for another Open Enrollment period unless you experience another qualifying life event.
You aren't required to stick with COBRA. It's one possible route, but the premiums are often high. During your 60-day special enrollment period, you can also look at ACA marketplace plans. If you're eligible for subsidies, those plans might cost considerably less. It's worth comparing the numbers before making your choice.
After employer health insurance ends, COBRA can extend your coverage for as long as 18 months. Certain circumstances, including divorce or death, can extend that to 36 months. Since COBRA tends to be costly, remember that you don't necessarily need to remain on it throughout the entire available period.
Your medical history won't prevent you from getting an ACA marketplace plan. These plans cannot reject an application or increase the premium because of pre-existing conditions. Health status isn't used to determine eligibility or pricing, which is especially valuable when you're changing jobs or losing insurance.
You don't need to panic about a gap in coverage. Your SEP gives you time to complete enrollment, and a new policy may begin on the first day of the following month. Although you aren't federally required to maintain insurance every single day, staying continuously insured helps protect your finances. Just make sure you act during your 60-day window.
That 60-day special enrollment window won't stay open forever. Complete a short quiz about your circumstances, and we'll help you explore the coverage choices available, including how subsidies could affect what you pay each month.
Start the quiz → Or call 813-999-0101Learn more about your situation