Keeping COBRA Coverage After Starting a New Job
Yes. You are allowed to keep COBRA coverage for up to 18 months, even if your new employer offers health insurance. You are not required to drop COBRA when other coverage becomes available. Many people choose to keep COBRA if the new employer’s plan has a waiting period or does not meet their needs.
What You Need to Know
- You can keep COBRA for up to 18 months even if new coverage becomes available.
- COBRA may cover dependents or services your new plan does not.
- You can switch to your new employer’s plan later using a Special Enrollment Period.
What happens when COBRA ends at 18 months
When you have exhausted the full 18 months of COBRA, you qualify for a Special Enrollment Period (SEP). At that point, you can choose from the following options:
- Employer plan: You may enroll in your employer’s group health plan because your COBRA coverage ended. Employers generally allow at least 30 days to sign up after losing other coverage.
- ACA Marketplace plan: You may purchase an individual plan through the Marketplace. The SEP gives you 60 days before and 60 days after COBRA ends to enroll.
Open Enrollment Period
You may only start a new traditional health insurance plan during an open enrollment period. The federal open enrollment periods begins in November. Employers will have special open enrollment periods for new employees and an annual open enrollment for all workers.
Under the Affordable Care Act, businesses that employ 50 or more full-time workers must provide health insurance to 95% of their employees. with 50 or more full-time employees (or the equivalent in part-time employees) must provide health insurance to 95% of their full-time employees. Those that do not comply with the law face may face penalties from the IRS.
Health insurance marketplaces, both federal and private, have major medical plans available. These plans provide comprehensive coverage for surgical procedures and pre-existing conditions. Many provide a prescription medication benefit.