You Now Have More Time to Register With COBRA After Losing Your Job
According to estimates of the Kaiser Family Foundation, taking into account that the unemployment rate is expressed in double digits , 26.8 million people could soon become uninsured if they do not subscribe to other types of health insurance. If you are one of the millions of Americans who lost their jobs during the pandemic, you may have to make a tough decision about health insurance, but as NPR reports , you may now have more time to plan an action plan.
According to federal law , if you lose your health insurance at your place of work after being laid off or shortened working hours, you have 60 days to decide whether or not to keep your company’s plan by choosing COBRA . But the new rule states that the 60-day window does not start until the COVID-19 “outbreak” period officially ends, and that moment has not yet been determined.
The new extension gives you a minimum of 120 days to continue your previous coverage with your former employer under COBRA. But here’s the problem: if you choose the COBRA option, you have to pay 102% of your company’s health insurance premiums – the full cost plus a 2% administration fee.
There is also a risk that your former employer will not survive the pandemic. If the company goes out of business, your COBRA health insurance will also disappear.
Despite these high costs, 10% of workers laid off or laid off due to the pandemic chose COBRU, according to a recent Commonwealth Foundation report . It might be worth considering if you don’t want to start over with a new health insurance franchise, especially if you’ve already cut your premiums significantly for 2020. You may also prefer to keep the same network of doctors and hospitals.
Other health insurance options
If COBRA is too expensive, you have other options for getting health insurance. You may be eligible for Medicaid, which can be free or low cost, depending on your situation. You can even get retroactive coverage after as little as three months. You can read more about how to qualify here .
You can also shop for health coverage at Healthcare.gov —aka Marketplace. You can qualify for a special enrollment period to sign up for the plan. Depending on your income, you may be eligible for a reduction in equity participation , which can make your monthly premiums more affordable.