Impact of Affordable Care Act on COBRA.
Many people are confused about the cost of COBRA and how it has been affected by the Affordable Care Act. To understand the cost, it is important to know that the cost gap between employer-based and individual coverage has closed dramatically since 2009. Because group coverage has always been guaranteed issue, rates were typically higher on a group plan than they were if you could qualify for individual coverage. Then, a 1% administrative fee was added for COBRA administration.
Since individual rates are higher than they were in 2009, it is important to shop for coverage and to know the cost of both COBRA coverage and individual coverage before making a coverage selection. It may be to your advantage to continue COBRA for 18 months. For more information about making that choice, contact Lucy Grosz at 614-889-0934.