Understanding Your Health Insurance Options After COBRA Ends
What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act, also referred to as COBRA, allows an employee and their eligible dependents to maintain their current health benefits after the employee loses access to their employer-sponsored plan. This usually happens as the result of a layoff or reduction in hours, impacting their qualification for employer-sponsored coverage. While COBRA premiums are higher than employer-sponsored plans, many families enroll in the program to keep their existing levels of coverage. However, there are limitations to the length of time an individual or family can retain COBRA coverage. Once eligibility ends, or if an individual or family is looking for a more affordable health plan, they will need to find health insurance after COBRA to keep themselves and their families covered.
How Long Does COBRA Last?
COBRA coverage lasts 18 or 36 months, depending upon the qualifying event. If eligibility was triggered by job loss or reduced hours, COBRA coverage can last up to 18 months from the date of the event.
If eligibility was triggered by job loss or reduced hours AND the employee became eligible for Medicare within 18 months of the qualifying event, their spouse and dependents can be covered by COBRA for up to 36 months from the date they became Medicare eligible.
If the employee became eligible because of a different type of qualifying event, like divorce, COBRA coverage can last up to 36 months from the date of the event.
Health Insurance Options After COBRA Runs Out
The loss of COBRA can be stressful, but there are other health insurance options for individuals and families, including those impacted by unemployment:
- Health Insurance Marketplace Plans: The Health Insurance Marketplace, established by the Affordable Care Act (ACA), offers a variety of plans from private insurers. Plan premiums may be partially or fully subsidized by the federal government, depending on income. You can shop for plans during the annual Open Enrollment Period, or during a Special Enrollment Period (SEP) triggered by a qualifying life event such as the end of COBRA coverage, marriage, birth of a child, or loss of other health benefits.
- Medicaid: Medicaid is a state-funded program that provides health coverage to eligible low-income individuals and families. Eligibility criteria vary by state, but if you meet the income and other requirements, Medicaid could be the right option.
- Medicare: If you're 65 years of age or older, you may be eligible for Medicare, a federal health insurance program. Medicare consists of different parts that cover hospital insurance (Part A), medical insurance (Part B), and prescription drug coverage (Part D). You can apply for Medicare during the annual enrollment period or as you near your 65th birthday.
Is Losing COBRA Coverage a Qualifying Life Event?
Losing COBRA coverage is a qualifying event for ACA Marketplace plans if you’ve reached the coverage term length. The Special Enrollment Period to find another health plan lasts for 60 days following the last day of COBRA coverage. However, the loss of COBRA is not a qualifying event if you cancel before the end of the COBRA term maximum, or fail to pay the monthly premiums on time. In this case, you will have to wait until the next open enrollment period to enroll in a health plan through the Health Insurance Marketplace.
What to Do When COBRA Runs Out
It’s important to act quickly if you need health insurance after your COBRA coverage ends. You only have 60 days to enroll in a Health Insurance Marketplace plan under the Special Enrollment Period, starting from the date you lost COBRA coverage. To find the best options for your needs, leave plenty of time to research health plans.
While you can qualify for Medicaid at any time, a lapse in coverage means you will not be covered if you need care. Any costs accrued when you are without coverage would be your responsibility.
No matter which option works best for your situation, choosing a plan before your COBRA benefits end is important to ensure you keep yourself and your family covered.
Shop Plans
If your COBRA coverage is ending, explore the individual and family health insurance plans available through Anthem to find the right option for your needs and budget.
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Anthem Blue Cross and Blue Shield es el nombre comercial de: En Colorado: Rocky Mountain Hospital and Medical Service, Inc. Los productos HMO son suscritos por HMO Colorado, Inc. En Connecticut: Anthem Health Plans, Inc. En Indiana: Anthem Insurance Companies, Inc. En Georgia: Blue Cross Blue Shield Healthcare Plan of Georgia, Inc. y AMGP Georgia Managed Care Company, Inc. En Kentucky: Anthem Health Plans of Kentucky, Inc. En Maine: Anthem Health Plans of Maine, Inc. En Missouri (excluyendo 30 condados en el área de Kansas City): RightCHOICE® Managed Care, Inc. (RIT), Healthy Alliance® Life Insurance Company (HALIC) y HMO Missouri, Inc. RIT y ciertas filiales administran beneficios que no son HMO, suscritos por HALIC, y beneficios HMO, suscritos por HMO Missouri, Inc. RIT y ciertas filiales solo prestan servicios administrativos para planes autofinanciados y no suscriben beneficios. En Nevada: Community Care Health Plan of Nevada, Inc. y Rocky Mountain Hospital and Medical Service, Inc. Los productos HMO son suscritos por HMO Colorado, Inc., que opera bajo el nombre comercial (dba) HMO Nevada. En New Hampshire: Anthem Health Plans of New Hampshire, Inc. Los planes HMO son administrados por Anthem Health Plans of New Hampshire, Inc. y suscritos por Matthew Thornton Health Plan, Inc. o por Anthem Health Plans of New Hampshire, Inc. En 17 condados del sureste de Nueva York: Anthem HealthChoice Assurance, Inc. y Anthem HealthChoice HMO, Inc. En estos mismos condados, Anthem Blue Cross and Blue Shield HP es el nombre comercial de Anthem HP, LLC. En Ohio: Community Insurance Company. En Virginia: Anthem Health Plans of Virginia, Inc. opera bajo el nombre comercial de Anthem Blue Cross and Blue Shield, y su afiliada HealthKeepers, Inc. opera bajo el nombre comercial de Anthem HealthKeepers, brindando cobertura HMO; su área de servicio abarca todo el estado de Virginia, a excepción de la ciudad de Fairfax, el pueblo de Vienna y el área al este de la Ruta Estatal 123. En Wisconsin: Blue Cross Blue Shield of Wisconsin (BCBSWI) suscribe o administra pólizas PPO y de indemnización, y suscribe los beneficios fuera de la red en las pólizas POS ofrecidas por Compcare Health Services Insurance Corporation. Compcare suscribe o administra pólizas HMO o POS. Licenciatarios independientes de la Blue Cross and Blue Shield Association. Anthem es una marca registrada de Anthem Insurance Companies, Inc.
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