American Rescue Plan Act of 2021’s COBRA Subsidy Ends September 31. What’s next?

Will I Have A Lapse Before COBRA Starts?

My employer has indicated that I am eligible for 18 months of COBRA coverage and that my employee benefits end on September 1st. My forms for enrollment will be mailed to be arriving by September 15th. Do I have a lapse in medical coverage as a result, or will COBRA pay for any qualified medical expenses between the end of employer benefits and the start of COBRA coverage?

Firstly, COBRA is not the name of an insurance company. COBRA is the law that requires your previous employer to offer you a continuation of the same health insurance coverage you had on their group plan when you were employed. That is what you are eligible for.

If you do choose to elect COBRA, there will be no lapse in coverage as COBRA works retroactively if you elect it and pay the premium.

Keep in mind, COBRA continuation is very expensive. You will have to pay the full premium. That will include your contribution, plus your employer’s contribution with an additional 2% administrative fee.

Avoid A Lapse In Coverage

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.

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Short-Term Health Insurance is popular and available in most states to cover gaps between major medical plans.

These plans also cover COVID-19 hospitalization. After deductibles and coinsurance, many plans will have $1 million in coverage.


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