IMPORTANT COBRA HEALTH INSURANCE PITFALL
COBRA and NYS Continuation Coverage is what allows employees to continue the health coverage they received from their employer once they are no longer employed. Employees are responsible for the full cost of premiums PLUS 2% admin fee for up to 36 months post-employment.
One newly discovered COBRA Health Insurance Pitfall of the new ACA/ Obamacare rules state that if an employee elects to take COBRA, they can’t choose an individual market plan later. They must wait until COBRA either expires, renews, or when the next Open Enrollment Period arrives. This is because Voluntary Termination of COBRA is not considered a Qualifying Event, preventing those on it from moving to possible lower cost plans and qualifying for possible subsidies until COBRA ends.
We recommend to all employees losing coverage from their jobs that are considering COBRA to call us first at 631-207-1800 to discuss your options with Licensed Insurance Professionals at Peak Advisors. Going on COBRA might be the obvious choice, but you must consider the repercussions first. Call us TODAY for assistance with your health insurance.