COBRA and ACA: What to Do When You Lose Your Job
Losing your job can be a stressful time, and dealing with health insurance can add to that stress. If you’re in this situation, you may be wondering what your options are for health insurance. In this blog post, we’ll discuss COBRA and ACA, two health insurance options available to you after you lose your job.
What is COBRA?
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It’s a federal law that allows you to continue your employer-sponsored health insurance for up to 18 months after you lose your job. However, you’ll have to pay the full cost of the premiums yourself.
What is the ACA?
The ACA, also known as Obamacare, is a federal law that makes health insurance more accessible and affordable for all Americans. If you lose your job, you may be eligible for a premium tax credit to help you pay for health insurance through the ACA Marketplace.
COBRA vs. ACA
Now that you know a little bit about COBRA and ACA, let’s compare the two options to see which one is right for you.
Feature COBRA ACA
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Coverage Same as your employer-sponsored plan Varies depending on the plan you choose
Cost You pay the full cost of the premiums You may be eligible for a premium tax credit to help you pay for premiums
Eligibility You’re eligible if you lose your job and your employer had 20 or more employees You’re eligible if you’re a U.S. citizen or legal resident and you’re not incarcerated
Enrollment period You have 60 days to enroll in COBRA You can enroll in an ACA plan anytime during the year
Which option is right for you?
The best way to decide which option is right for you is to compare the costs and coverage of COBRA and ACA plans. You can also contact a licensed health insurance agent to help you compare plans and enroll in the one that’s right for you.
Conclusion
Losing your job can be a stressful time, but it’s important to know that you have options for health insurance. If you’re eligible for COBRA, it may be a good option for you to continue your current coverage. However, if you’re not eligible for COBRA or if the cost is too high, you may want to consider an ACA plan.
If you’re not sure which option is right for you, contact a licensed health insurance agent to help you compare plans and enroll in the one that’s right for you.
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