What is a COBRA health care plan?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss.

Is it worth it to get COBRA insurance?

Key Takeaways. COBRA provides a good option for keeping your employer-sponsored health plan for a while after you leave your job. Although, the cost can be high. Make an informed choice by looking at all your options during the 60-day enrollment period, and don’t focus on the premium alone.

What is not covered by COBRA?

COBRA does not cover plans that provide only life insurance or disability benefits. Group health plans covered by COBRA that are sponsored by private-sector employers generally are governed by ERISA – the Employee Retirement Income Security Act of 1974.

Is COBRA cheaper than regular health insurance?

COBRA insurance is often more expensive than marketplace insurance, partly because there isn’t any financial assistance from the government available to help you pay those COBRA premiums.

How does COBRA work when you quit?

If you are laid-off or quit your job, COBRA will pay your health care costs up until 18 months following termination of employment. However, you must have both dental and vision coverage while employed if you want them covered by Cobra after quitting.

Which is cheaper COBRA or Obamacare?

ACA plans tend to be much cheaper than COBRA rates. “If your adjusted gross income fits the guidelines, you can get a premium subsidy,” she says.

How long can you stay on COBRA after leaving a job?

18 months
You can keep your job-based insurance policy through the federal Consolidated Omnibus Budget Reconciliation Act, or COBRA. COBRA allows you to continue coverage — typically for up to 18 months — after you leave your employer.

Is it better to go with COBRA or Marketplace?

When it comes to cost, marketplace plans are usually more favorable. However, choosing COBRA may be a better fit for those with pre-existing medical conditions. Changing jobs can be very stressful, especially when figuring out how to manage your health.