Did you know that having health insurance can protect you financially in case you fall sick? In the US, over 68.5% of people have private health insurance. Employment-based health insurance is the most common type of health insurance coverage, covering about 54.5% of the entire population. However, what if you lose your group health? Skyline Benefit is an independent health insurance broker and we can help you compare COBRA vs. Covered California.
What happens if you lose your job or no longer qualify for Coverage from your job?
Don’t worry; you still have options. You could consider COBRA, which lets you keep your employer-provided Coverage for a limited time after your employment ends.
If you’re offered COBRA coverage, one question you may have is whether you still qualify for Covered California. The short answer is yes; you can still qualify for Covered California if offered COBRA. However, there are a few things to remember regarding Cobra Insurance and Covered California.
What is COBRA?
COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows you to continue your employer-sponsored health insurance for a limited time after you lose your job or your hours are reduced. If you had insurance coverage through your spouse and got divorced, you can use COBRA to continue your Coverage. Adult children can also use COBRA to continue having health insurance once they lose access to dependent Coverage.
This Coverage can last up to 18 months (or longer in some cases), but you’ll be responsible for paying the full cost of the premiums, which can be pretty expensive.
Can you qualify for Covered California if you’re offered COBRA?
The answer is yes, but there are a few things to keep in mind:
- You may have to decline COBRA to qualify for Covered California. If you’re offered COBRA coverage, you have the option to accept or reject it. If you decline COBRA, you may qualify for a special enrollment period to sign up for a Covered California plan.
- Your eligibility for financial assistance may be affected. If you decline COBRA and enroll in a Covered California plan, your eligibility for financial assistance will be based on your income and other factors. If you accept COBRA, you won’t be eligible for financial assistance through Covered California.
- You may have to wait until the end of your COBRA coverage to enroll in Covered California. If you decline COBRA and enroll in a Covered California plan, you’ll have to wait until your COBRA coverage ends before your Covered California coverage can begin.
How Long Does COBRA Last?
The type of qualifying event that occurs determines the maximum period of COBRA coverage available:
- Job loss or reduction in hours: 18 months of Coverage for the employee, spouse, and dependents.
- Death of covered individual: 36 months of Coverage for the spouse and dependents.
- Legal separation or divorce: 36 months of Coverage for the spouse and any dependent children.
- Enrollment in Medicare:36 months of Coverage for the spouse and dependent children.
- Loss of dependent coverage:36 months of Coverage for formerly dependent children, such as adult children who recently turned 26.
Which Coverage should I go for ?
COBRA serves as a crucial tool for maintaining health insurance during transitions. Yet, it comes with many drawbacks, including
potential high costs and dependence on an employer’s plan changes. With Cobra, you must pay total premiums and a 2% fee. This may strain and affect your budget when health complications arise.
Additionally, individuals are at the mercy of their former employer’s plan adjustments, risking inadequate Coverage.
Considering these drawbacks, You can Consider enrolling for Covered California . Covered California offers advantages such as diverse health plans, potential subsidies to ease financial burdens, and freedom from reliance on an employer’s plan changes.
Takeaway
Are you out of a job and need to compare COBRA vs. Covered California? you can still qualify for Covered California, but you’ll need to weigh the costs and benefits of each option related to Cobra Insurance and Covered California and make the best decision for your individual situation. If you have any questions or need help navigating your options, don’t hesitate to get in touch with our Skyline Benefit Expertise or Covered California directly.
Looking for Assistance with how to compare COBRA vs. Covered California?
Skyline Benefit is a certified insurance agency with Covered California. Act now and get the premium subsidy and coverage that you deserve.
Our agents can help you review your COBRA vs. Covered California plan options and tailor your health insurance plans.
Call us now at (714) 888-5112
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