I know a couple of people who will likely save a good deal of money by switching from COBRA to health plans available on ACA exchanges. It strikes me that people making this transition are an important subset of those who may stand to benefit from the ACA. I'd like to invite people who have made this switch or are considering it to contact me via the "about me" tab on the right margin of this blog.
COBRA, the Consolidated Omnibus Budget Reconciliation Act, first passed in 1986, is best known for allowing people who lose or quit a job to continue on the former employer's group health plan for a fixed period (usually 18 months; 36 months in case of divorce) without the benefit of the employer's contribution. It can also be tapped by people recently divorced or widowed or whose spouses become eligible for Medicare. An FAQ about eligibility and rules is provided by the Dept. of Labor, here.
Employer-sponsored insurance (ESI) usually provides more expansive coverage than the silver plans that are the benchmark in ACA exchanges -- though that may not be the case for people who qualify for additional subsidies reducing out-of-pocket expenses. But ESI is expensive. People whose income qualifies them for relatively modest ACA subsidies, or no subsidy at all, may have to balance tradeoffs when deciding between COBRA and an ACA plan. Below, in brief, with first-name pseudonyms, are outlines of the two situations I'm familiar with.
COBRA, the Consolidated Omnibus Budget Reconciliation Act, first passed in 1986, is best known for allowing people who lose or quit a job to continue on the former employer's group health plan for a fixed period (usually 18 months; 36 months in case of divorce) without the benefit of the employer's contribution. It can also be tapped by people recently divorced or widowed or whose spouses become eligible for Medicare. An FAQ about eligibility and rules is provided by the Dept. of Labor, here.
Employer-sponsored insurance (ESI) usually provides more expansive coverage than the silver plans that are the benchmark in ACA exchanges -- though that may not be the case for people who qualify for additional subsidies reducing out-of-pocket expenses. But ESI is expensive. People whose income qualifies them for relatively modest ACA subsidies, or no subsidy at all, may have to balance tradeoffs when deciding between COBRA and an ACA plan. Below, in brief, with first-name pseudonyms, are outlines of the two situations I'm familiar with.
