Is there a cheaper option than COBRA?
Asked by: Corrine Aufderhar | Last update: July 16, 2025Score: 4.8/5 (68 votes)
Are there cheaper alternatives to COBRA?
I found the ACA to be cheaper than Cobra. FWIW, $1700 month is pretty cheap as far as health insurance goes, but it varies by age, location, and number of people and how much deductible. I'm paying $400 per adult, $200 per kid for the cheapest plan in one of the cheapest states.
What can I do instead of COBRA?
- You can enroll in a Marketplace plan within 60 days of losing your job-based coverage.
- Find Marketplace plans and prices to compare them to your COBRA coverage or offer.
- If eligible for Medicaid or CHIP, you can enroll in those programs any time and coverage can start immediately.
Is it better to use COBRA or ACA?
Cost of COBRA vs ACA also depends on age. ACA premiums increase with age, especially as you approach your 60s. COBRA premiums are the same for everyone in the group pool, which might be younger and lower premium on average. So ACA might be cheaper if you are younger and COBRA might be cheaper if you are older.
Can I choose marketplace coverage instead of COBRA?
Can I drop it during Marketplace Open Enrollment and enroll in a Marketplace plan instead? During Marketplace Open Enrollment, you can sign up for a Marketplace plan even if you already have COBRA. You will have to drop your COBRA coverage effective on the date your new Marketplace plan coverage begins.
Health Insurance For Early Retirement - Here Are 4 Options
What do I do if COBRA is too expensive?
If COBRA feels expensive, consider ACA plans or short-term health insurance. Marketplace plans during the open enrollment period or a special enrollment period can offer more budget-friendly options.
Is COBRA cheaper than open market?
Not only are Marketplace plans less expensive than COBRA, 80% of people will usually qualify for financial help from the government (called a subsidy) to help pay their premium. What's covered? Usually full coverage with prescription drug benefits.
Why are COBRA plans so expensive?
COBRA coverage is not cheap.
Why? Because you're now responsible for paying your portion of your health insurance: The cost your employer contributed to your premium, in addition to the 2% service fee on the cost of your insurance.
What is the downside of ACA?
Impact on Individual Insurance
It was also known that consumers would face a very different health insurance world under the ACA, with some people seeing their premiums go down and some seeing them go up, and the majority of Americans seeing higher deductibles, higher copays, and a smaller pool of providers.
What is the 60 day loophole for cobras?
You have 60 days to enroll in COBRA once your employer-sponsored benefits end. Even if your enrollment is delayed, you will be covered by COBRA starting the day your prior coverage ended.
What are the cons of COBRA?
- It's expensive. Your premiums will probably go up since your employer isn't contributing. ...
- You're subject to your employer's plan offerings. You might lose COBRA coverage if the employer changes its plan or goes out of business.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
Is COBRA the only option?
Most consumers will pick either COBRA or Covered California, but some may need to pick both to avoid a gap in coverage.
Is COBRA ever worth it?
“If you're close to meeting your deductible on your current insurance plan and you have high health care costs, it may be worth it to temporarily stay on your COBRA plan,” explains Donovan. The same holds true if you're far into your employer plan's year and have already met your deductible.
Can I negotiate COBRA premiums?
Your employer may subsidize COBRA, either pursuant to a company-wide plan or an individual severance agreement that you negotiate.
Does health insurance end the day you quit?
When does health insurance expire after leaving a job in California? Your health insurance may expire the day you leave your job, or at the end of that month. For instance, if you quit on January 10th, you may have coverage through January 31st. You'll need to find out what your employer's policy is.
Why do people not like ACA?
Obamacare has increased the cost of health care and health insurance. The ACA's federal mandates and spending, including Medicaid expansion and subsidized individual plans, have drastically increased the cost of health care and health insurance. 2. Obamacare increases Americans' reliance on the federal government. …
What insurance is cheaper than COBRA?
COBRA insurance lets individuals continue their employer-sponsored health coverage for a limited period after leaving their job. Alternatives to COBRA may offer more affordable or appropriate coverage. These include the health insurance marketplace, short-term insurance, Medicaid, or a new employer's plan.
How can I reduce my COBRA cost?
To reduce your COBRA insurance cost per month, one option is to see whether your employer offers other lower-cost plan options with a lower coverage level. This tradeoff could make sense if you're healthy. You can't switch plans immediately after losing your job.
How to avoid Cobra insurance?
- The employee is enrolled in or eligible for Medicare.
- The employee does not enroll within 60 days of receiving the notice of eligibility from the employer.
- The employee is covered by another health plan.
- The employee is fired for gross misconduct.
Can I go on Obamacare instead of COBRA?
If you choose to enroll in COBRA, you can switch to ACA health insurance under the following circumstances: You have used up all of your COBRA coverage. You have another qualifying life event that makes you eligible for another Special Enrollment Period. It is the annual Open Enrollment Period.
What is the average cost of COBRA per month?
The costs for family coverage are $1,997 per month, with $379 paid by the employee. This means health plan costs could jump to over $717 per month for an individual opting into COBRA, including the extra fee, and to over $2,037 per month for family coverage.
What are disadvantages of COBRA insurance?
Nonetheless, it's important to keep in mind the downsides of COBRA. Some of the most prominent of these include the high cost of insurance when it is borne entirely by the individual, the limited period of coverage under COBRA, and the continued dependency on the employer.