Affordable COBRA Alternatives: Short-Term, Medicaid and ACA Plans
COBRA insurance lets individuals continue their employer-sponsored health coverage for a limited period after leaving their job. Alternatives to COBRA may offer more affordable or appropriate coverage. These include the health insurance marketplace, short-term insurance, Medicaid, or a new employer’s plan. Review your options and assess your needs before making a decision.
Alternatives to COBRA insurance may offer more affordable or suitable coverage. These options include the health insurance marketplace, short-term insurance, Medicaid, or a new employer’s plan.
Why Consider Alternatives to COBRA?
COBRA insurance can be costly, with premiums often higher than other options. Coverage is limited to 18 or 36 months, and eligibility criteria are specific. Alternatives may provide more affordable or longer-term coverage to ensure continuous health insurance.
Choosing a Temporary Health Plan
Many opt for temporary health plans instead of continuing with COBRA to cover gaps until their next major medical coverage begins. This is especially common for those who have recently left a job and are awaiting new employer coverage.
Your Options
Temporary medical insurance costs vary by age and state.
- Affordable Care Act plans will cover pre-existing conditions.
- Short-term plans might be financially more practical, though the coverage is not as robust.
- Medicaid offers low-cost or free health coverage for eligible low-income individuals and families, including some seniors and people with disabilities.
About Short-Term Plans
In some states, obtaining term health insurance may require joining a professional organization. Some coverage options may auto-enroll you into an organization if applicable based on your location.
Important: Ending COBRA Is Not A Qualifying Event
Once you start COBRA, that will be your Affordable Care Act health insurance and ending that coverage is not considered a qualifying life event for enrolling in a new ACA health plan.
When Can You Switch COBRA to ACA?
- During federal open enrollment (Nov 1 – Jan 15).
- When a new employer group plan is offered.
If you can no longer afford COBRA, your options are to apply for state Medicaid or obtain a short-term insurance plan.
Reach out to the COBRAinsurance.com team with any questions.
Medicaid and Other Government Assistance Programs
For individuals with limited income, Medicaid provides a no-cost or low-cost alternative. Eligibility varies by state but is generally based on income and family size. Other government programs, such as the Children’s Health Insurance Program (CHIP), offer coverage options for those who may not qualify for Medicaid but still need affordable solutions.
Check your state of residency for links to Medicaid options in your state.
Short-Term Health Insurance Alternatives To COBRA
Short-term health insurance provides a valuable temporary solution for individuals transitioning between jobs or health plans. Often more affordable than COBRA, these temporary health plans may offer a viable option for those in need of immediate, albeit less comprehensive, coverage.
Ideal for individuals in good health seeking essential coverage for a brief period, short-term insurance can bridge the gap efficiently. However, be aware that these plans typically exclude pre-existing conditions and might not deliver the breadth of benefits found in marketplace or employer-sponsored health insurance options.
Affordable Care Act Alternative to COBRA Continuation
Marketplace insurance, available through the Affordable Care Act (ACA), is a popular alternative. It often provides more affordable options compared to COBRA, with a range of plans to suit different needs and budgets. The marketplace allows for comparison of plans based on coverage, cost, and network of providers. Enrolling during the open enrollment period or qualifying for a special enrollment period due to life events such as job loss ensures that individuals can find coverage that meets their needs.
- Premiums tend to be lower overall.
- Up to 80% of individuals who apply for a marketplace plan receive a government subsidy to offset premium costs.
- Outside of the annual Open Enrollment period, you can enroll in a marketplace plan following select qualifying events, including within 60 days following the loss of a job.
- Plans have few limits based on age, gender and health.
- Your coverage lasts for as long as you pay your premiums.
- You have access to a diverse array of plans and a wide network of providers.
Learn about saving by enrolling in an Affordable Health Care plan.
Short-Term COBRA Alternatives
There are several types of insurance coverage options available as alternatives to COBRA.
- Short Term Medical Insurance offers coverage for new illnesses and injuries, with plans starting at $80 per month. Coverage can begin as soon as midnight on the same day, and it helps protect against unexpected medical expenses.
- Accident Only Insurance covers healthcare costs resulting from accidents, starting at $44 per month. This plan also includes Telehealth services, providing access to doctors for common issues, and coverage can begin as early as midnight.
- Limited Indemnity Insurance provides basic medical coverage for people who may not have access to comprehensive health insurance. It also includes Telehealth services and can start the same day.
Short Term Medical
Next Day Coverage
Flex Term Health Insurance helps to protect you from the medical bills that can result from unexpected Injuries and Sickness. Safeguard your financial future with Flex Term Health Insurance. It provides the peace of mind and health care access you need at a price you can afford. Read more about Flex Term Health.
Accident Supplement with Telehealth
Accident Only Coverage
Accidents happen, and this plan can help with reimbursing some of the costs you incur so you can focus on getting care. Comprehensive Accident Medical (CAM) can help you pay for the treatment you need resulting from injuries or accidents. Learn more about Accident coverage.
Limited Indemnity with Telehealth
Fixed Monetary Benefit
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.
How to Decide If COBRA Is Right for You
Consider the following factors when evaluating health insurance options:
- Coverage duration
- Network status of healthcare providers
- Total cost (premiums, deductibles, out-of-pocket expenses)
- Alternative coverage options (health insurance marketplace, short-term insurance, Medicaid, new employer’s plan)
Below are options for health coverage while between major medical plans.
COBRA Is a Major Medical Plan
When you sign up for COBRA, you are keeping the same work health insurance you had when you were employed. It’s great for those with preexisting conditions or who see a doctor regularly.
After you make your first premium payment, your insurance restarts and what you’ve paid in for deductibles picks up where they left off.
Employer-sponsored health insurance is required to be a comprehensive plan.
These are major medical plans that cover:
- Surgeries
- Preventative Care
- Pre-Existing Conditions
- Typically, Prescription Drugs
Temporary Health Insurance Solutions
If COBRA coverage is unavailable or if you simply can not afford it, you can get alternative health coverage for new illnesses or injuries.
Many people will enroll in short-term medical insurance or an accident only plan to “get by” until their next major medical insurance starts. This type of insurance is also known as “gap insurance.”
These plans are not for everyone, but may be a good choice for you if:
- You have no pre-existing conditions.
- You want to stay insured at a lower cost.
- You are not pregnant or plan on becoming pregnant soon.
- You have had no recent health problems.
- A medical professional has advised you to undergo a medical procedure in the future.
- You need health insurance and it’s not yet a federal open enrollment period to enroll in a qualified health plan.
Remain Insured
Accident Only plans start at $44*
with coverage starting tomorrow!
Call us
877-262-7241
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Temporary health insurance is a popular, affordable solution to cover gaps in coverage while you are between Major Medical plans.
*Eligibility for short term medical insurance is based on age and state availability.
Frequently Asked Questions
How does marketplace insurance compare to COBRA in terms of cost?
Marketplace insurance, available through the Affordable Care Act, often offers more affordable premiums than COBRA. The cost difference can vary based on the chosen plan, location, and income, as subsidies may reduce premiums for marketplace plans.
Without a subsidy, costs between both forms of coverage tend to be similar. COBRA plans tend to have the upper hand if:
- You’ve fulfilled the deductible for your former employer’s group health insurance plan for the year, and you want to continue coverage for the next few months.
- You wish to retain the same network of healthcare providers; switching to marketplace insurance may mean changing providers or not receiving the same degree of coverage.
- Your former employer’s group health insurance plan provides better coverage for pre-existing conditions and any prescription medications you take.
Can I switch from COBRA to marketplace insurance?
Yes, but you may only switch from COBRA to marketplace insurance during the open enrollment period or if you qualify for a special enrollment period due to certain life events like losing COBRA coverage.
What are short-term health insurance plans?
Short-term health insurance plans provide temporary coverage, ideal for bridging gaps between longer-term insurance solutions. These plans can be more affordable but usually offer less comprehensive coverage and may not cover pre-existing conditions.
Who is eligible for Medicaid?
Eligibility for Medicaid varies by state but generally depends on income, family size, and specific circumstances like pregnancy or disability. It’s designed for individuals with limited income and resources.
When can I enroll in a new employer’s health insurance plan?
Enrollment periods for new employer-sponsored health insurance plans can vary. Typically, coverage begins within the first month of employment, but some employers may have waiting periods. Check with your new employer for specific enrollment details.
How do I choose the right health insurance alternative?
Consider your healthcare needs, budget, and the coverage details of each option. Evaluate factors like coverage duration, network providers, premiums, deductibles, and out-of-pocket costs to find a plan that fits your situation. It’s always important to consult a health insurance specialist when you need COBRA help.
