Cobra vs. ACA: Which Insurance is Right for You After a Layoff?

When you lose your job, you may suddenly find yourself without health insurance. This can be a stressful time, and it’s important to understand your options so you can make the best decision for your situation. Two common options are COBRA and ACA (Affordable Care Act) insurance. Here’s a breakdown of what you need to know.

COBRA

COBRA is a federal law that allows you to continue your employer-sponsored health insurance for up to 18 months after you lose your job. The downside to COBRA is that it can be expensive. You will typically have to pay the full premium cost, plus an administrative fee.

Pros of COBRA:

You can keep your current health insurance plan
You can continue to see your current doctors
You will have nationwide coverage

Cons of COBRA:

It can be expensive
You will have to pay for the coverage even if you don’t use it
You may have to pay a penalty if you don’t continue your coverage for the full 18 months

ACA

ACA is a health insurance program that was created by the Affordable Care Act. ACA plans are available through the Health Insurance Marketplace, and they are often more affordable than COBRA. ACA plans also offer a variety of benefits, including:

Coverage for essential health benefits, such as doctor visits, hospital stays, and prescription drugs
Subsidies to help you pay for your premiums
A maximum out-of-pocket limit

Pros of ACA:

It can be more affordable than COBRA
You can get coverage for essential health benefits
You may be eligible for subsidies
You will have a maximum out-of-pocket limit

Cons of ACA:

You may not be able to keep your current health insurance plan
You may not be able to see your current doctors
You may have to pay a penalty if you don’t have health insurance

Which Option is Right for You?

The best way to decide which option is right for you is to compare the costs and benefits of each plan. You should also consider your health needs and your financial situation. If you are healthy and don’t expect to need much medical care, an ACA plan may be a good option for you. If you have a chronic condition or you are expecting to need expensive medical care, COBRA may be a better choice. Our licensed agents are here to help you understand your options and choose the plan that’s right for you. You can call us at [phone number] or visit our website at [website address].