COBRA Is Usually A No, But…

If your ex-employer has greater than 20 full-time employees, then you have the right to COBRA. That period lasts, in most situations, for eighteen months.

The issue is that you have to pay the full ‘sticker price’ for the coverage. You might be shocked at the cost, many are. For those who are not compensated in wages/salary, it can easily be the case that much of the compensation is, in fact, due to this single benefit, which can easily exceed $20,000 a year for a couple/family.

So now what?

  • You have the unrestricted right to enroll in individual health insurance, and receive the APTC (Advance Premium Tax Credit) if you qualify. There are deadlines, so you cannot sit on your hands in making a decision.

  • You have the right to pay the COBRA premium (which can include a 2% administrative fee).