When you lose access to employer-sponsored health insurance, you face an important decision: do you keep your current health plan through COBRA or look for something new? It all depends on your budget and the kind of care you need. We’ll walk you through the details!

What is COBRA Insurance? 

If you quit or are terminated from your job, you may be offered COBRA coverage by your employer. COBRA allows you and your family to stay enrolled in the same health insurance you had while you were employed. The catch? Unless your employer offers a subsidy, you will now have to pay for the full monthly premium, plus an administrative fee. Typically, this means your plan will be much more expensive than you’re used to. COBRA coverage lasts for up to 18 months (plus an additional 11 months if you’re disabled).  

How to Sign Up For COBRA

Within 45 days of losing your employment, you will receive a COBRA election notice from your employer. This is a form with details about your plan options and prices. You must complete the form and return it to your employer to start your COBRA coverage. 

It’s important to note that you have 60 days from when you receive your election notice (or from when you lose your coverage, whichever is later) to decide if you would like to enroll in COBRA.

The Pros and Cons of COBRA Plans 

What is a Marketplace plan? 

Losing job-based health insurance qualifies you for a Special Enrollment Period. This means that you are eligible to enroll in any insurance plan sold on Healthcare.gov or your state’s health insurance marketplace (e.g. Covered CA). Marketplace plans are also sometimes called Obamacare or ACA (Affordable Care Act) plans. These individual health plans are typically much less expensive than COBRA plans, especially if you qualify for a subsidy! To qualify for a subsidy for your Marketplace coverage, you can’t also be enrolled in COBRA or any other type of qualifying coverage. If you’ve already enrolled in COBRA, you may qualify for a subsidy for your Marketplace coverage as long as you drop your COBRA coverage before your Marketplace plan starts.

How to Sign Up for a Marketplace Plan

If you want a Marketplace plan, you must apply within 60 days from when your employer-sponsored coverage ends. Once you enroll, your health insurance will typically kick in on the first day of the following month. It’s to your benefit to apply as soon as possible so you can avoid a gap in coverage. 

You can explore available Marketplace plans for free right here on Stride (we’ll even recommend the options that will save you the most money). Depending on your state, you will then enroll through directly on Stride for a Healthcare.gov plan or on your state’s insurance marketplace. Don’t worry! We can guide you through the application process.

Enter your zip code below to get started.

How to Choose a Marketplace Plan

All Marketplace plans provide no-cost preventive care, including annual checkups and important health screenings. They are also legally required to cover Essential Health Benefits. This means they must help pay for certain services like lab work, prescription drugs, and hospitalizations. However, every plan will cover these benefits differently. 

We recommend making a list of your (and your family’s) medical conditions, prescriptions, and favorite doctors. Consider this information as you review different plan details, such as: 

• Network: A network is the type of access your plan offers to doctors, specialists, and healthcare facilities. Some plans will cover you if you see a provider outside your network and others won't. If you have a favorite doctor, you’ll want to call and verify that they are in-network for the plan you’re considering. If you visit specialists often, you may want to explore plans with more flexible networks. Learn more here.

• Deductible: A deductible is the amount of money you have to pay out-of-pocket for health care before your insurance will help cover the cost. If you only need health insurance for emergencies and don’t use care often, a less expensive high-deductible plan may be a great option. Learn more here.

• Metal Tier: Health insurance companies organize their plans by metal tiers (bronze, silver, gold, and platinum) to represent different price points and coverage amounts. If you use medical care often or if you need regular prescriptions, you may want to search for a plan in a higher metal tier. Learn more here.

Stride Tip → If you search for your plan options on Stride, you can enter your medical conditions, prescriptions, and healthcare team, and we’ll help you find the plan option that works best. 

The Pros and Cons of Marketplace Plans 

Still on the fence about which coverage option is best for your family? Need help deciding on a Marketplace plan? Head here for answers to your questions.

Or, find plans near you so you can compare them to your COBRA benefits. Enter your zip code below to get started.