COBRA Coverage: A Safety Net for Marketplace Health Plans

What is COBRA?

COBRA, the Consolidated Omnibus Budget Reconciliation Act, is a federal law that gives former employees and their families the right to continue their health insurance coverage through their previous employer’s plan. COBRA coverage typically lasts for 18 months, although it can be extended under certain circumstances.

COBRA for Marketplace Health Plans

Marketplace health plans, also known as ACA plans, are eligible for COBRA coverage. This means that if you lose your marketplace plan due to a qualifying event, such as job loss or divorce, you have the option to continue your coverage through COBRA.

The COBRA rules for marketplace plans are the same as those for employer-based plans. This includes the 60-day enrollment period and the requirement to pay retroactive premiums if you elect COBRA coverage after your plan has ended.

Important Considerations

COBRA coverage is not free. You will need to pay the full premium, which includes the employer’s portion and your own.
COBRA coverage is only available for a limited time. You typically have 60 days to elect COBRA coverage after your plan has ended.
COBRA coverage is not a guarantee. If the insurance company goes out of business, your COBRA coverage will end.

Who Should Consider COBRA?

COBRA coverage is a valuable option for those who are losing their marketplace health plan and need to maintain health insurance coverage. This is especially true if you have a pre-existing condition or if you take expensive medications.

If you are considering COBRA coverage, it is important to weigh the costs and benefits carefully. You should also talk to a licensed agent to learn more about your options and to determine if COBRA is right for you.

Case Study: Moving Abroad and COBRA

In the post, the author is moving abroad and is concerned about having health insurance coverage in the United States if they need it. COBRA coverage could be a good option for the author because it would provide them with a safety net in case they need medical care in the United States while they are waiting for their new health plan to start.

The author should be aware that COBRA coverage is not free and that they will need to pay the full premium. They should also make sure to elect COBRA coverage within 60 days of their marketplace plan ending.

If you are moving abroad and are considering COBRA coverage, it is important to talk to a licensed agent to learn more about your options and to determine if COBRA is right for you.