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

Do You Have To Elect COBRA Within A Month’s Lapse In Coverage?

You Must Elect COBRA Coverage Within 60 Days Of Your Notice Or Formerly Waive Your Right

Under normal COBRA rules, you have 60 days from the day your employer sent your continued benefit enrollment form to enroll. During the national COVID-19 pandemic, the new COBRA election period is now 1 year since notification of benefits or up to 2 months after the end of the outbreak period, which ever is earlier.

You may have time to get other coverage. If you do not need to seek medical treatment within the time of your qualifying COBRA event and the day you start your new group health insurance, you may choose not to elect that continuation coverage.

Lapse Of COBRA Premium Payment May Cause Termination

If your COBRA payment is not made in a timely manner or within the 30 day grace period than you are risking termination of your COBRA rights and coverage. If you do make the payments within the time allowed you will not lose coverage, but will still need to pay the later months’ coverage. It is best to communicate with your COBRA administrator about payment that may not be made on or before the due date. Please note that the previous employer is not required under COBRA to remind the employee when it is time to pay the premium.

Or, Save Money With Short-Term Medical 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.

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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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