What can I do instead of COBRA?
Asked by: Alek Stanton | Last update: June 22, 2025Score: 4.7/5 (44 votes)
- 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 there a better option than COBRA?
Marketplace insurance, available through the Affordable Care Act, often offers more affordable premiums than COBRA. The cost difference can vary based on the chosen plan, location, and income, as subsidies may reduce premiums for marketplace plans.
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 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.
What is the COBRA loophole?
If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.
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How do I waive COBRA coverage?
If you are currently receiving COBRA coverage for which a premium is being paid and you wish to waive future coverage, you can simply refrain from paying the COBRA premium for that coverage period.
What is the 105 day COBRA loophole?
So, if you maxed out the 60 day election period plus the 45 day payment period, you could actually go 105 days without paying for the coverage.
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 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 decline a COBRA?
You must decide to accept or reject COBRA coverage during a certain time period (usually 60 days after your employer notifies you). You must pay your monthly premiums or you can lose your coverage. Once you have used up all your COBRA benefits, you may be able to get an extension of coverage under Cal-COBRA.
How to make COBRA cheaper?
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.
What if I can't pay COBRA?
If your COBRA payment is not made in a timely manner, or within the 30-day grace period then you are risking termination of your COBRA rights and coverage.
What are disadvantages of Cobra insurance?
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.
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.
What happens if I cancel my marketplace insurance?
If you end your Marketplace plan and don't have other health coverage: You may have to wait for the next Open Enrollment Period to enroll again, unless you qualify for a Special Enrollment Period. There are significant health and financial benefits to having health coverage — and risks if you don't.
What is stronger than COBRA?
The anaconda is much larger and stronger, using its powerful body to wrap around and crush its prey. While the cobra's venom is deadly, it would take time to affect the anaconda, and the snake could still overpower the cobra before the venom kicks in.
Can I do Obamacare instead of COBRA?
If you're currently on COBRA, you have the option to switch to an ACA plan during open enrollment or if you qualify for a special enrollment period. This can happen if your COBRA coverage ends or you experience a major life event, like a change in income or family size.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
Who is not eligible for COBRA?
Indemnity policies, PPOs, HMOs, and self-insured plans are all eligible for COBRA extension; however, federal government employee plans and church plans are exempt from COBRA. Individual health insurance is also exempt from COBRA extension.
Are there alternatives to COBRA?
Instead of enrolling in COBRA continuation coverage, there may be other more affordable coverage options for you and your family through the Health Insurance Marketplace, Medicaid, or other group health plan coverage (such as a spouse's plan) through what is called a “special enrollment period.” Some of these options ...
Can I opt out of COBRA?
Can You Cancel COBRA at any time? Yes, you can cancel COBRA coverage at any time.
Why is cobra insurance so high?
COBRA continuation coverage is often more expensive than the amount that active employees are required to pay for group health coverage, since the employer usually pays part of the cost of employees' coverage and all of that cost can be charged to individuals receiving continuation coverage.
What is the loophole for COBRA coverage?
Understanding the 60-Day Loophole
It's not so much of a loophole, but two 60-day windows of time to remember. You have a 60-day window following the end of your employer-sponsored plan to select COBRA coverage or choose a new plan in the individual ACA marketplace.
Can I decline COBRA?
Decide not to participate in COBRA and apply for special enrollment through Covered California. Because you will be newly uninsured, you will qualify for special enrollment in a Covered California health insurance plan outside of the annual open-enrollment period.
What is the 14 day rule for COBRA?
14-Day Notice Period
The HR office must provide the COBRA Election Notice and Election Form to qualified beneficiaries within 14 days from the date of the qualifying event or loss of coverage, or when the HR office is notified, whichever comes first.