Lost Health Insurance Due to Layoff? Here’s Your Guide to ACA Insurance and COBRA
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Losing your job can be a stressful time, and it can be tempting to put off dealing with your health insurance. But if you’re no longer covered by your employer’s plan, it’s important to take action quickly to avoid a lapse in coverage.
One option for those who have lost their job is to enroll in an Affordable Care Act (ACA) plan. ACA plans are available through the Health Insurance Marketplace, and they offer a range of coverage options to fit your needs and budget.
Qualifying for an ACA Plan
To qualify for an ACA plan, you must meet certain requirements, including:
You must be a U.S. citizen or legal resident.
You must not be incarcerated.
You must not have access to affordable health insurance through an employer or other source.
Losing employer-sponsored insurance is a qualifying event that allows you to enroll in an ACA plan outside of the Open Enrollment Period. You have 60 days from the date your employer-sponsored insurance ends to enroll in an ACA plan.
COBRA
Another option for those who have lost their job is to enroll in COBRA. COBRA is a federal law that allows employees to continue their employer-sponsored health insurance for a limited time after they lose their job.
To be eligible for COBRA, you must have been covered by your employer’s health insurance plan for at least 18 months. You must also pay the full cost of the premium, which can be expensive.
ACA vs. COBRA
ACA plans and COBRA both have their own advantages and disadvantages. ACA plans typically offer more affordable premiums than COBRA plans. However, ACA plans may have higher deductibles and copays than COBRA plans.
COBRA plans offer the advantage of allowing you to keep your existing coverage. However, COBRA plans can be expensive, and you may not be able to afford the premiums.
Choosing the Right Option
The best option for you depends on your individual circumstances. If you’re looking for affordable coverage, an ACA plan may be a good option. If you want to keep your existing coverage, COBRA may be a better choice.
If you’re not sure which option is right for you, you should speak to a licensed health insurance agent. They can help you compare plans and find the best option for your needs.
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