To Cobra, or Not To Cobra, That is the Question

Are you wondering if Cobra is your Only health insurance solution, or is it your best and/or most affordable option?

Here are some things to consider while pondering this question.

1. 60 days is the magic number for both Cobra and deciding if you want to stay and keep the plan you have or you have 60 days from the last day of coverage to decide if the individual marketplace is best for you.

2. Income and what is going to show on your 2020 taxes is a critical factor when determining how to proceed with this decision. Do you have reason to believe that you will be returning to work sooner rather than later?

I am advising the majority of my clients losing their jobs and therefore their employer coverage to wait and see. I understand that may seem odd! This is my thought process: Since Cobra can be retroactive, you potentially have the ability to coast without paying within that 60 day period. Given our current circumstance with the pandemic and the unknown of how long you may be out of work, using this time may give you a better idea of how the balance of this year will play out.

Cobra may turn out to be your best and most affordable solution, especially if you are a high to even fairly high wage earner and you are keeping a plan you are familiar with.

On the other hand, depending once again on income and needs, Cobra may be unaffordable and not a consideration at all. The individual Insurance world, either the market place, short term solutions or even health shares may be an absolute life saver for you.

So once again, I am advising a wait and see approach to most. Lets re-evaluate in 30 to 50 days. Don’t panic! We will get through this and we will get you the protection you need. I have a variety of solutions and I am here to educate and advise.