You probably received a letter from your employer letting you know that you qualify for COBRA insurance. Two questions probably popped into your head as you tried to make sense of it all: What in the world is COBRA insurance? Do I need this? A medical emergency can happen at any time, so you have to get this stuff figured out now.
Before you decide if COBRA insurance is right for you and your family, there are some things you need to know. You would also be eligible for a special enrollment period on the federal exchanges.
COBRA health insurance, which came from the Consolidated Omnibus Budget Reconciliation Act, lets you temporarily keep usually for up to 18 months the same employer-based health plan you had at your old job. Most employers with group health plans offer this option to employees. And trust us, you do not want to have a gap in coverage! If you meet the requirements, you can keep your insurance assuming you want to stick with the same health plan and benefits you received at your old job.
If you decided to leave your job, had your hours reduced, or got fired and lost health coverage, you qualify for COBRA continuation coverage. That rules out the possibility of enrolling if you had previously opted out of employer-based coverage.
If you, your spouse and your children are covered under your workplace health plan, your whole family can get in on the COBRA action. But if you were the only person covered, then no one else in your family would qualify for COBRA—just you.
Whether you work for a big law firm in New York or a small public school in Nebraska, most employers who offer health care benefits are required to offer COBRA insurance to employees after they leave.
There are some exceptions, though. All of that changes when you leave, go part-time, or get the boot. We know those numbers sound steep and they are. Trust us, taking the temporary hit from COBRA premiums is way better than facing potential medical bankruptcy. This includes any costs your employer previously helped pay. COBRA has pros and cons, depending on your situation. It provides you with the same coverage you had under your employer. This means you can keep your health insurance plan even after you leave a job.
Do you expect to be out of a job for an extended period of time? If so, coverage under COBRA means you can continue to see your same doctors and receive the same health plan benefits.
It may be helpful to compare options, such as individual health insurance plans. An individual plan is one you buy from a broker or insurance carrier or through a state or federal Health Insurance Marketplace. Depending on your expected income, you may qualify for subsidies on an individual health plan, which could make it a less expensive option than a COBRA plan.
You can shop, compare plan details, costs, and more to see if this is a better alternative than COBRA insurance. Visit HealthCare. This information is for educational purposes only. It is not medical advice. Always consult your doctor for appropriate examinations, treatment, testing, and care recommendations. All insurance policies and group benefit plans contain exclusions and limitations.
For availability, costs and complete details of coverage, contact a licensed agent or Cigna sales representative. This website is not intended for residents of New Mexico. Review our frequently asked questions to learn more. There are additional options, such as short term health insurance or Affordable Care Act ACA plans that you may also consider. Learn more about coverage options to consider. Check with your employer to learn the details of your furlough.
In general, here are some guidelines:. If there is no longer a health plan, COBRA would not apply and you would need to look at other coverage options. With COBRA, you can continue the same health care coverage through the plan you had when you were employed. That may include medical, dental and vision plans. You will be asked to choose and pay for the same health care coverage you had with the plan you were under when you were employed.
This subsidy is available April 1, through September 30, When you were employed, your employer generally paid for some of the cost of your health insurance premium, and now you will responsible for the full amount. Depending on your needs and situation, there are a number of other heath insurance options, besides COBRA, that may offer the coverage you're looking for.
You may qualify for no cost or low cost plans , Affordable Care Act ACA plans or short term plans for temporary coverage that can fill the gap until you find a longer term solution. These options may also cost less than COBRA continuation coverage, so it may be helpful to compare the cost and coverage options before you make a decision on your coverage. The timeframe for electing and paying for COBRA is a 1 year from the date you're first eligible for relief or b 60 days after the announced end of the National Emergency the end of the Outbreak Period , plus any remaining time under the plan.
You must elect COBRA coverage and make the required premium payment as outlined in your Qualifying Event Notice communication from your employer for coverage to be activated and claims to be paid. It is important to understand that coverage will not be activated, and claims will not be processed, until the required premium is paid. If you do not make required premium payments timely, claims will not be paid until the premium payments are made.
See the new timeline information above or learn more about the changes due to ARPA. Certain plans may pay as if secondary to Medicare, even if you are not enrolled in Medicare. Employer plans Employers Small business plans Midsize business plans National accounts Group health insurance basics. View all plans: Shop and learn Understanding health insurance Types of health insurance Open enrollment Understanding insurance costs.
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