Insurance Options When Losing Your Job-Based Coverage Under the Affordable Care Act

Health Care Stocksy_txp289319b9YKG000_Small_296779

In the past, people who lost their job-based health insurance had little choice but to continue coverage at their own expense under COBRA.

But with passage of the Affordable Care Act, the loss of employer-based coverage is now considered a “qualifying life event.”

That means you can buy health insurance without waiting for the national open enrollment period – a move that could save you thousands of dollars.

COBRA is a federal law allowing employees who lose their job-based coverage to keep their plan for up to 18 months. Enrollees must pay both the employee and employer portion of their premiums, so this option can be costly.

Now the good news: One study found that people eligible for COBRA who buy insurance on their own instead may save up to $2,750 a year for individual coverage or $8,674 a year for family coverage.

Given the potential for savings, you may want to consider these factors if you become eligible for COBRA:

  • If costs aren’t a concern, you may prefer to keep your plan by enrolling in COBRA.
  • Compare coverage options beyond COBRA. Check out plans sold in the private marketplace as well as in the Health Insurance Marketplace that offers discounted coverage depending on your income and family size.
  • Keep track of deadlines. You have 60 days after losing job-based coverage to enroll in COBRA. Otherwise, you must wait until the next open enrollment period and risk getting a tax penalty if you are uninsured for more than two months.

If you have more questions about enrolling in health insurance and how the Affordable Care Act impacts you and your finances TurboTax has you covered. You can go to TurboTax Health to get your questions answered.

 

 

 

 

Comments (1) Leave your comment

  1. This Blog is not totally true, I was in this situation and it all depends on your total income, if you can live just on unemployment without any additional income this might work you would get a discounted rate from AHC. But usually Cobra has better coverage if your employer had a good plan and the cost would be about the same if you compare it to the Affordable Health Care options with the same coverage. The AHC policies that they offer are not cheap and have little good coverage unless you qualify for subsidies, I pay $720 a month and AHC policies do not cover anything until i meet my deductible of $6600.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s