Changing Health Insurance after COBRA AMAC Benefit Highlight
Last in a series highlighting the valuable benefits offered by the Health Insurance Division of AMAC
I s your COBRA about to expire or expired already? Are you wonder- ing what to do next for health coverage? If so, a Special Enrollment Period can help you get into a new plan with ease. COBRA (the Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows former employees and their families to continue using the group health coverage provided through their employer’s health insurance plan after the employee leaves the company. COBRA is only temporary, typically expires after 18 months, and is at the individual’s expense. But if you haven’t found a new job with health coverage by the time your COBRA runs out, you could be in a pickle! The good news is that the expiration of COBRA entitles you to what is known as a Special Enrollment Period (SEP). SEPs are times outside the yearly Open Enrollment Period when you can sign up for health insurance. You qualify for an SEP if you’ve had
certain life events, including losing health coverage, moving, getting married, having a baby, or adopting a child, or if your household income is below a certain amount. Although you will qualify for an SEP when your COBRA naturally expires after 18 months, it is important to note that you will not qualify if you choose to terminate your COBRA before its expiration. You are also eligible for an SEP if your former employer was helping pay for your COBRA through a stipend and that stipend ends. So, now that we’ve established your eligibility for an SEP, what next? The clock is ticking! The expiration of your COBRA will trigger a Special Enrollment Period that runs from 60 days before until 60 days after COBRA expires. During this time, you are eligible to apply for a plan on the public or private health exchange. As long as you apply for new coverage within the 60-day enrollment period, your application for new insurance
cannot be declined. However, if you miss your 60-day SEP, you may not be able to enroll in a health plan until the next open enrollment period. (If this happens, the short-term health coverage we discussed in our July/ August issue may be a good option in the interim.) The good people of AMAC’s Health Insurance Division are well equipped to help if you are coming off of COBRA. If you’d like guidance from one of our friendly, licensed health agents, just scan the code below to request a call, or reach them directly at 855-428-0576.
Patricia Lopez Director of Operations and Marketing AMAC Senior Resources Network
Volume 17 Issue 1 • 31
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