I have recently quit my current job and have received my COBRA election paperwork. Since I have a pre-existing condition I need to continue my insurance through my previous employer until I pass my 60 days with my new employer. My question is after my 60 days when I am then able to receive insurance from my new employer can I then cancel my COBRA or must I continue to make payments for the next 18 months?
You May Cancel COBRA At Any Time
To cancel your your COBRA coverage you will need to notify your previous employer or the plan administrator in writing. After you stop your COBRA insurance, your former employer should send you a letter affirming termination of that health insurance. You should then receive a certificate of credible coverage for the length of time you were on the plan.
Keep in mind, your COBRA is qualified major medical insurance and certified by the Affordable Care Act. You may only enroll in new marketplace health insurance during federal open enrollment periods. Open enrollment typically happens each year in November.
Reasons To Cancel COBRA
- Started a new job and enrolled in their health insurance.
- Purchased marketplace health insurance.
- Enrolled in a spouse’s work health plan.
- Can no longer afford the cost of COBRA.
COBRA Cancellation Assistance
If you need help with understanding the next steps after cancelling your COBRA, you may call customer service for a consult. Depending on your current health situation will determine what’s best for you.
Can You Afford To Keep Your COBRA?
When you keep the same employer health insurance, you pay the entire premium. Many people find COBRA to be expensive and will want to look for an alternative. Unfortunately, you are only able to enroll in an Affordable Care Act Qualified Health Plan (also known as QHP) during an open enrollment period. Even then, you are paying the high costs of a major medical plan.
Short Term Alternative
When you simply cannot afford paying for your previous employer health insurance, an alternative to COBRA is a Short Term Medical health plan. These plans are designed to protect you from new illnesses or injuries. These temporary plans do not provide coverage for pre-existing conditions and will likely not cover prescriptions you have been taking.
Affordable Temporary Health Insurance
If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.