With summer ending and impending holiday's right around the corner, it's easy to get caught up in all the hoopla and forget about your health insurance needs. But before you put away your grill and start defrosting your turkey, here's your reminder: November 1st, 2015 marks the first day of Open Enrollment for a 2016 Health Insurance Marketplace plan.
"But I'm currently using COBRA coverage," you might be saying. What is COBRA coverage? COBRA stands for Consolidated Omnibus Budget Reconciliation Act. It's a law that mandates that in the event in which you would typically lose health insurance benefits, your employer must offer continuation group health care coverage to you and certain family members for a period of time. When someone loses their job-based insurance due to voluntary or involuntary separation from employment, a reduction of house worked or a divorce, he or she may take COBRA continuation coverage. However, if you're terminated because of negligence or your employer simply changes or cancels the company health insurance plan, you are not eligible for COBRA.
COBRA coverage maintains your current health insurance plan even when unemployed for up to 18 months. However, it can be expensive. You are responsible for paying 100% of the premiums, including the share the employer used to pay, plus a small administrative fee. But with Open Enrollment coming up, you have options besides COBRA that may be less expensive.
If you're thinking about switching, it's important to know that:
During the Open Enrollment period, you can drop your COBRA coverage and get a plan through the Health Insurance Marketplace instead even if your COBRA coverage hasn't run out. If you miss Open Enrollment, you can only qualify for the Special Enrollment Period if your current COBRA plan ends. You may not end COBRA early and enroll.
November 1st is right around the corner, so we'd encourage you to look into your options and budget before you're locked into COBRA. As always, contact an agent at Schwarz Insurance with any questions or concerns.