Should You Opt for COBRA or Marketplace Health Insurance?

Quitting your job to travel can be an exciting adventure, but it also raises important questions about health insurance. If you’re no longer employed, you’ll need to find a new way to stay covered. In this blog, we’ll explore two main options: COBRA and Marketplace health insurance.

What is COBRA?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows you to continue your employer-sponsored health insurance for a limited period after you leave your job. COBRA coverage can last up to 18 months, and you’ll be responsible for paying the full premium, which can be expensive.

What is Marketplace Health Insurance?

The Health Insurance Marketplace, also known as the ACA Marketplace, is a government-run online marketplace where you can shop for health insurance plans. Marketplace plans are available to individuals and families, and you may qualify for premium subsidies to help lower the cost of coverage.

Advantages and Disadvantages of COBRA vs. Marketplace Health Insurance

COBRA Pros:

Offers the same coverage as your previous employer-sponsored plan
Allows you to avoid a lapse in coverage
May have lower premiums than some Marketplace plans

COBRA Cons:

Can be expensive, as you pay the full premium yourself
Coverage ends after 18 months
You may not be eligible for premium subsidies

Marketplace Health Insurance Pros:

Can be more affordable than COBRA, especially with premium subsidies
Wider range of plans to choose from
You can enroll in coverage anytime, not just during a special enrollment period

Marketplace Health Insurance Cons:

Coverage may not be as comprehensive as COBRA
You may have to pay higher deductibles or copays
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Choosing the Right Option

The best option for you depends on your individual circumstances. If you can afford the premiums and want to maintain the same coverage you had before, COBRA may be a good choice. If you’re looking for a more affordable option and are willing to consider different plans, the Marketplace may be a better fit.

Seek Professional Advice

It’s important to speak with a licensed insurance agent to discuss your options and determine which one is right for you. They can help you compare plans, understand the costs, and enroll in coverage that meets your needs.