Is COBRA Insurance Retroactive?

With the new health care reform laws, will COBRA insurance still be retroactive and how does this works?

Yes, COBRA Benefits Are Retroactive With No Lapse In Coverage

The Federal COBRA Health Insurance Act requires all businesses with 20 or more employees to offer a continuation of the health insurance after job loss.

When you elect COBRA coverage, the effective date begins the date after your work health insurance ended.  The insurance plan continues from where it left off. The coinsurance you pay toward your deductibles won’t change.

Your former employer’s insurance plan administrator has 45 days (or 14 days during the COVID-19 pandemic) to notify you of your right to continue workplace insurance. If you do not choose this continuation of benefits, you will need to formerly waive your right to COBRA.

Cost Of COBRA Insurance

If you elect to continue your workplace coverage, you will pay the full cost of the COBRA premium, including the portion the employer was subsidizing. A major medical policy may have a monthly premium of $400 – $800 per individual. This includes what your employer was paying. If the employer is using a third-party insurance administrator, they are allowed to add a 2% administration fee.

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.

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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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