Question About the 60-Day COBRA Loophole

Hey everyone,

I’ve heard something about a 60-day loophole with COBRA insurance. Can someone explain what this is and how it works? I want to make sure I’m understanding it correctly before making any decisions.

Thanks a lot!

The 60-day loophole with COBRA insurance refers to the 60-day period you have to elect continuation coverage after leaving a job. During this time, you can decide whether to enroll in COBRA and, if you choose to do so, your coverage can be retroactive to the date your previous insurance ended, preventing any gaps. However, COBRA coverage can be costly since you’ll need to pay the full premium, including the employer’s share, plus a 2% administrative fee. This period gives you the flexibility to review your options before making a decision, ensuring you maintain continuous health coverage if needed.

You’re right, there is a thing with COBRA and 60 days. Basically, after you lose your job (or something like that), you have 60 days to decide if you want to keep your old health insurance plan through COBRA. I can guarantee it’s not exactly a loophole, but more of a safety net. I also had a friend who used those 60 days to shop around for a new plan that fit his budget better. Just remember, COBRA can be pricier since you’re paying the whole premium, not just your share.