I’m a bit puzzled about why COBRA is still around in today’s world. I understand why it was necessary in the past, but isn’t losing your job now considered a qualifying event for getting an Obamacare policy? Wouldn’t that generally be a much cheaper option than going with COBRA?
I haven’t had to use COBRA in decades, and back then, it seemed like a pretty terrible option unless you had pre-existing conditions. So, I’m curious—what’s the point of COBRA now? Is there something I’m missing?
COBRA can be a good option for some people. Sometimes, marketplace plans don’t start right away, and there might be a gap between jobs or a delay in signing up for new coverage. COBRA can be more affordable and convenient than getting a new marketplace plan for just 30 days, as long as you choose COBRA within the election period.
COBRA is also beneficial for those who have already reached their plan’s out-of-pocket maximum for the year. In this case, they would only need to pay the monthly premiums, if they choose COBRA within the 60-day election period. Additionally, some employers continue to help pay for COBRA for a few months, making it a great option since it’s the same plan at a lower cost.
It is one of those things that would hurt some people to take away, but hurts absolutely no one by having the choice of using it. And it some cases it may be the best option.
COBRA can be used retroactively for up to 60 days. Even if I don’t sign up right away, it’s reassuring to know that I have coverage for any short breaks between jobs.
