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

Should I Get A Notice Prior To Rate Increase For COBRA?

Is my past employer required to give me notice prior to a rate increase and insurance carrier change? And if so how much notice?

If the group changes health plans or health plan company while you are on continuation coverage, your coverage will also change to the new plan. If this does happen, your previous employer does have to notify you, but they are only required to notify you prior to the effective date of the premium change, meaning they could do it as late as the day before the rate change. They are limited to changing the premium price only once in a 12-month period.

Why Does COBRA Cost So Much?

Employees who find themselves continuing their employer-sponsored health insurance plan are sometimes surprised by the cost of COBRA insurance. This is because you are paying for all of it. This includes the employer’s portion they had paid previously, plus a 2% administration fee often times.

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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