How COBRA Works In Michigan — Costs, Applying and More
In Michigan, COBRA is a federal law that gives individuals the right to continue their employer-sponsored health insurance after losing coverage due to a qualifying event, such as job loss or reduced hours. This continuation acts as a safety net, offering the same benefits for a limited time as long as the full premium is paid by the individual. Eligible individuals have 60 days from the date of notice or loss of coverage to elect COBRA continuation.
For those who are not eligible for federal COBRA, Michigan law provides an alternative option under the Nonprofit Health Care Corporation Reform Act. Individuals who were enrolled in a fully insured group plan through a nonprofit health care corporation may qualify to convert their coverage to an individual self-pay plan if coverage is lost.
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COBRA Eligibility
Michigan Allows
COBRA Alternative:
Save Up To 70%
Term Health Insurance
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$44/month*
Covers An Insurance Gap
Until Your Next Work Health Plan Starts
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*Based on age and state availability
Continuing Health Insurance Coverage In Michigan
Please choose:
No Pre-Existing Conditions
Term Medical Gap Coverage
Available in some states, as low as $44/month
Coverage For
Pre-Existing Conditions
$400 – 700/month per individual
Medicare
Nearing Retirement Age
Learn about Medicare Advantage
Michigan’s Nonprofit Health Care Corporation Reform Act
Michigan does not have a Mini-COBRA law for employees of small businesses with fewer than 20 employees. As a result, workers who lose their group health insurance due to termination or a reduction in hours are not guaranteed continuation of the same group coverage under state law.
However, under the Non-Profit Health Care Corporation Reform Act, eligible individuals may convert their group coverage into an individual health insurance policy. This option allows the person to continue coverage on a self-pay basis, though the new plan may have different premiums and benefits.
To get started with a conversion plan, contact the insurance company that provided your group health policy. Request information about individual conversion options, including available plans, monthly premiums, and enrollment deadlines. Insurers are required to provide this information upon request and guide you through the application process.
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Michigan’s Health Insurance Options for Pre-Existing Conditions
COBRA insurance in Michigan is a great option for those who need temporary coverage. It provides up to 18 months of continuous health care coverage, allowing you to maintain your current plan and keep the same doctors while transitioning between jobs or other life changes.
How to Apply for COBRA In Michigan
Employer Has 20+ Employees
If your employer has at least 20 employees on staff, they must notify their workforce of the option of obtaining COBRA coverage following a qualifying event. You’ll apply either through your employer or a third-party administrator.
Once enrolled, you may continue your most recent work health insurance for up to 18 months as an employee. Family members may access the plan for up to 36 months. Your coverage remains the same as when you participated in your employer’s group health insurance plan, and your deductible will also roll over.
Qualifying events for COBRA insurance include the loss of your position, quitting, a reduction in hours or losing coverage through your spouse’s plan in select scenarios: you recently divorced, you are recently widowed, your spouse’s employer declared bankruptcy or your spouse became eligible for Medicare.
You have 60 days following any of these events to elect COBRA insurance and 45 days to pay your premium. The premium will be $400–700/month, per insured person.
Marketplace/Obamacare Alternatives to COBRA
A loss of work health insurance is a qualifying event to find new healthcare through the public healthcare exchange.
The average plan premium in Michigan is $435 in 2023.
Use Accident-Only Coverage in Michigan
The state of Michigan allows you to enroll in an accident-only major medical insurance plan while you transition to new employment.
Accident-only plans are a type of short-term or temporary health insurance plan that offers cash payments in the event of an injury from a covered scenario — for example, a car accident or broken bones. Coverage assists with paying for out-of-pocket costs that begin to accumulate during recovery and may help with managing related expenses, such as transportation to and from physical therapy sessions.
Accident Only Insurance with Telehealth
Pre-existing Conditions Do Not Exclude You From Accident Only Coverage
Plans start at $44/month.
Based on age and state availability
Accidents happen, and the last thing you want to worry about is who or how the bills are going to get paid. With this plan, you can focus on getting care. CAM helps you and your family with the high cost of healthcare resulting from injury or accidents.
Includes Telehealth – Access to prescribing doctors for common issues
Limited Indemnity with Telehealth
Includes Telehealth giving you access to prescribing doctors for common issues.
Core Health Insurance provides guaranteed acceptance Limited Indemnity Medical coverage for your basic medical needs, helping to provide a medical option for people who do not have the luxury of being covered by a comprehensive health insurance plan.
Medicare
After your workplace insurance ends, you’ll sign up for Medicare within eight months.
In general, you can sign up for Part A and Part B starting three months before your 65th birthday and ending three months after your 65th birthday.
Learn more about Medicare deadlines and how Medicare Advantage plans can replace original Medicare at no cost to you.
COBRA Is Available in All 50 States
Employee continuation of health insurance coverage is not required in all states. When a state lacks laws governing the continuation of work-related medical benefits, the federal COBRA Act protects these rights. Find out more about your state.
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Accident Only plans start at $44/mo
Short-Term Medical low as $80/mo
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877-262-7241
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