A job ends, hours drop below the threshold, or a divorce takes you off a spouse's plan. Coverage ends on a date, usually the end of that month, and a 60-day window opens. Here is how to use it.
Option one: COBRA
- Keep the exact plan you had for up to 18 months (36 in some situations).
- You pay the full premium plus a 2 percent administrative fee. What cost you $200 a month with the employer's share may cost $700 or more.
- Best when you are mid-treatment, have met a large deductible, or need to keep specific doctors for a few months.
- You have 60 days to elect it, and it is retroactive to the day coverage ended. That makes it a useful safety net while you decide.
Option two: a marketplace plan
- Losing coverage is a qualifying event. You have 60 days from the loss to enroll, and a subsidy is based on your new, usually lower, income.
- For most people this is cheaper than COBRA within the first month.
- Coverage starts the first of the month after you enroll, so do not wait until day 59.
Option three: a spouse's employer plan
Losing coverage also opens a special enrollment window on a spouse's plan, typically 30 days. Compare it to the marketplace on total cost, not just premium.
Option four: short-term medical
A bridge for a gap of a month or two before new employer coverage starts. Lower premiums, health questions, and no coverage for pre-existing conditions. Not available in every state. It is a stopgap, not a substitute.
If you are 65 or older
Losing employer coverage after 65 opens an eight-month Special Enrollment Period for Part B with no penalty, but only two months to join an Advantage or Part D plan. COBRA does not count as employer coverage for Medicare purposes, so do not delay Part B while on COBRA.
This guide is general information, not advice about a specific policy. Benefits, enrollment rules, and costs vary by state, carrier, and year. Confirm details for your situation with a licensed agent.
