How COBRA Works In Michigan — Costs, Applying and More

In the state of Michigan, COBRA is a federal law that allows individuals to continue their health insurance coverage after leaving or losing their job. Whether as gap insurance between jobs, following termination or as a result of another qualifying event, individuals must pay the full premium for this continued coverage in order to remain eligible and have 60 days to accept their COBRA benefits..

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Continuing Health Insurance Coverage In Michigan

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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

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Michigan Coverage Continuation

Residents of Michigan have access to COBRA insurance, which is a federal law that allows individuals and their families to continue receiving health coverage after leaving or losing employment. This type of insurance can be used for up to 18 months in most cases, although some people may qualify for longer periods depending on the circumstances.

The average cost of COBRA insurance in Michigan varies based on factors such as age and location but typically ranges from $400-$600 per month.  

How Much Is COBRA Insurance?

The average cost of COBRA insurance in Michigan varies based on factors such as age and location but typically ranges from $400-$600 per month. To estimate what you’ll pay, your COBRA premiums include what you contributed on a monthly basis while covered by your recent employer’s plan, as well as their portion, plus an administration fee of no more than 2%.

Michigan’s Non-Profit Health Care Corporation Reform Act

Unfortunately, Michigan does not have a Mini-COBRA Law that applies to companies with 19 or fewer employees. Though, the Non-Profit Health Care Corporation Reform Act does allow workers the option of converting their group health plan, to an individual self-pay marketplace plan.

Source: Michigan statute 550.1410a

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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.

Learn More About Applying for COBRA

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.

View Affordable Care Act Plans

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

Coverage begins as early as midnight tonight.

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.

Coverage begins as early as midnight tonight.

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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