What is COBRA?
Under COBRA, you have the right to choose to continue your group health coverage for a limited period of time, although you will be responsible for paying the full premium, including the portion that your employer used to pay. The length of time you are eligible for COBRA coverage depends on the qualifying event. For example, if you leave your job, you may be eligible for COBRA coverage for up to 18 months. If you experience a qualifying event because of a disability, you may be eligible for COBRA coverage for up to 29 months.
COBRA can be a good option if you need temporary health insurance coverage after leaving your job or experiencing a qualifying event. However, it can be more expensive than other types of health insurance, since you are responsible for paying the full premium. It’s important to compare the cost of COBRA coverage to other health insurance options before deciding which one is right for you.
When to Consider COBRA
COBRA may be a good option if you need temporary health insurance coverage after leaving your job or experiencing a qualifying event, such as a reduction in hours or a divorce. Here are a few reasons you might choose COBRA:
- Continuity of coverage: COBRA allows you to continue the same group health insurance coverage you had while you were employed, which can be beneficial if you are happy with your current plan and have established relationships with healthcare providers.
- Pre-existing conditions: Under COBRA, you cannot be denied coverage or charged more due to pre-existing conditions.
- Time to find a new plan: COBRA allows you to keep your current health insurance coverage while you look for a new job or a new health insurance plan. This can give you some peace of mind and help protect you from the high costs of medical care.
- Limited eligibility: COBRA is only available to certain individuals who were enrolled in an employer-sponsored group health plan and who experience a qualifying event. If you are eligible for COBRA, it may be your only option for temporary health insurance coverage.