COBRA is too expensive — what are my options?
COBRA costs the full premium plus 2% admin fee — often $700-$2,000/month per person. Better options usually exist.
COBRA is rarely the cheapest option. Job loss is a Qualifying Life Event that opens a Special Enrollment Period for ACA Marketplace plans — which often have premium tax credits that make them much cheaper than COBRA. Medicaid expansion states have a separate eligibility check based on current monthly income.
Steps
- Apply for ACA Marketplace coverage — Special Enrollment Period is 60 days from coverage loss
- Check Medicaid eligibility based on current income (in expansion states, 138% FPL = ~$1,732/month single)
- If you're 65+, enroll in Medicare immediately (8-month SEP after employer coverage ends)
- Compare total monthly cost — COBRA premium vs Marketplace premium - tax credit
Frequently asked questions
COBRA is too expensive — what are my options?
COBRA is rarely the cheapest option. Job loss is a Qualifying Life Event that opens a Special Enrollment Period for ACA Marketplace plans — which often have premium tax credits that make them much cheaper than COBRA. Medicaid expansion states have a separate eligibility check based on current monthly income.
What are the steps?
1. Apply for ACA Marketplace coverage — Special Enrollment Period is 60 days from coverage loss; 2. Check Medicaid eligibility based on current income (in expansion states, 138% FPL = ~$1,732/month single); 3. If you're 65+, enroll in Medicare immediately (8-month SEP after employer coverage ends); 4. Compare total monthly cost — COBRA premium vs Marketplace premium - tax credit
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