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

How Long Do You Have To Be Employed To Take Advantage Of COBRA?

How long do I have to be on my employer’s health plan to be able to take advantage of COBRA?

1 Day

It only matters how long you’ve had health insurance through your employer. As long as you were enrolled in your employer’s group health plan you are then eligible for to keep the same health plan that you had. Regardless of how your job had ended. The continuation of health insurance coverage after job loss is a right granted through the federal COBRA law.

You’ll Pay The Full COBRA Premium

Keep in mind that when you continue on the same health insurance you had when you were employed, you are now responsible for the entire premium. This includes the amount that your employer contributed to that health plan. Many companies will outsource their COBRA Administration to a third-party administrator. Also known as TPAs, these businesses will enroll you back into the same plan and take your monthly payment. TPAs are allowed by law to add an additional 2% fee for their administration time.

When Should You Choose COBRA

If you or a family member visits the doctor often or regularly takes prescription medicine, we highly recommend continuing on a COBRA plan. The group health insurance is a Qualified Health Plan per the Affordable Care Act. These plans are required to provide coverage for pre-existing conditions.

Some People Use GAP Insurance Until The Next Job With Health Coverage

Quite often people find the cost of COBRA coverage to be very expensive. Typically, a single person will pay $400-500 per month to keep that same work insurance. When continuing on your former employer’s health plan is cost prohibitive, many people will turn to temporary health insurance plans. These plans are affordable and the out of pocket expenses are predictable. Also known as Short-Term Medical Insurance, these plans only cover new conditions and illnesses.

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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