The date of the incident will determine how long you are protected. This policy covers you for up to 18 months if you lose your job or have your hours reduced. Suppose you lost your job or had your hours cut that became Medicare eligible 18 months before the occurrence. In that case, COBRA coverage will continue for up to 36 months after you become Medicare eligible. Due to paying the total premium, COBRA usually comes with a hefty price tag. It would help if you covered your employer's portion while you were employed. There may also be a 2 percent administrative fee added. 3 Shared Responsibility Payments under the Affordable Care Act (ACA) have been suspended for the 2019 plan year.

Inadequate Health Coverage And The Need For Temporary Cover

Short-term health insurance can bridge the gap between your existing policy and the one you'll get through your new employer. Benefiting from this alternative to COBRA is facilitated by the speed with which applications are processed. An estimate for a temporary plan can be obtained online in as little as 30 seconds. When you apply now, you might be covered the next day. Unlike with other medical insurance programmes, you are not limited to applying during a specific enrollment period but can do so at any time. There is a logic for the lower cost of these plans compared to others that are alternatives to COBRA. A preexisting condition is one reason for being denied coverage. Furthermore, you should know that this choice may not include coverage for some critical medical needs, like prenatal care or mental health services.

Obamacare Health Insurance Exchanges

ACA policies are an excellent alternative to COBRA for a health insurance plan. The Affordable Care Act (ACA) ensures everyone can access affordable health insurance through their respective state's Health Insurance Marketplace. Here you may compare and enroll in various health plans offered by different companies in your state. If your state doesn't provide it, the federal government will. You may be eligible for an ACA health plan if you are a lawfully present U.S. resident and are not currently serving time in a correctional facility. The government may even offer subsidies to help you pay for your Affordable Care Act plan premiums or perhaps cover them entirely. If you live in one of the 50 states and want a tax credit to help pay for your health insurance premium, your income must be between 100% and 400% of the federal poverty line.

Separate Medical Insurance

Suppose you want more comprehensive coverage than what a short-term plan provides but don't make enough money to qualify for premium assistance under the Affordable Care Act. In that case, COBRA may be a good alternative for you. Private insurance companies outside the ACA Marketplace offer their own health care plans. Since these are not Marketplace plans, they do not qualify for premium subsidies. You may still be able to avoid paying the increased COBRA payments by finding policies that provide equivalent or better coverage at a cheaper cost.

Health Insurance With A High Deductible

If you're looking for an alternative to COBRA, consider a high-deductible health plan under the Affordable Care Act, an independent health insurance plan, or a short-term plan. The monthly premiums for these plans are lower, but you'll have to spend more out of pocket before the insurer starts paying for anything. A high-deductible plan can be an excellent alternative to a COBRA policy if you don't anticipate recurring medical expenses but still want coverage in an emergency. This coverage will shield you against the highest-priced medical emergencies. Until you reach your deductible, you'll be responsible for paying the total price of most doctor's appointments out of pocket.

Conclusion

If you quit your job without a "qualifying event," you won't be entitled to COBRA and will have to forego your health insurance benefits. It's as easy as providing notice to resign unless there's been severe misconduct or a significant cut in hours. To take this step may also necessitate finding another employment. The length of your protection is tied to when the occurrence occurred. If you lose your work or have your hours cut, this policy will pay your living expenses for up to 18 months. Suppose you become Medicare eligible 18 months before the event (such as a job loss or reduction in hours). In that case, your COBRA coverage will extend to 36 months from when you became Medicare eligible. COBRA typically has a high cost because of the requirement to pay the entire premium.