Losing health coverage – through a job change, layoff, or other life event – can feel overwhelming.
You may hear about the federal Consolidated Omnibus Budget Reconciliation Act (COBRA)* or Cal-COBRA as your next step, but those aren’t your only options. And depending on your situation, they may not be the best fit.
If you’ve recently lost coverage, here’s what you need to know.
COBRA and Cal-COBRA: What they offer and what they don’t
When you leave a job with health benefits, you’re often given the option to continue your employer coverage temporarily through COBRA or Cal-COBRA depending on the size of your employer. These programs let you continue your existing coverage – but you pay the total plan’s monthly premium, plus an additional charge, which can add up quickly.
COBRA or Cal-COBRA might sound like the easiest choice, especially if you want to keep your doctors and avoid switching plans, but it’s not permanent. Coverage usually lasts 18 to 36 months and can be expensive. For more information about coverage, visit the California Department of Managed Health Care.
Before you sign up for COBRA or Cal-COBRA, it’s worth taking a moment to look at your other options.
You may qualify for a more affordable, long-term plan
If you’ve recently lost your job-based health coverage, you may be eligible for an Individual and Family Plan (IFP) through Blue Shield. These plans are designed to fit a range of needs and budgets. You may even qualify for financial help that lowers your monthly premium.
An IFP might be a better choice if you want more control over your monthly costs and are eligible for a subsidy through Covered California. Even if your employer hasn’t mentioned this option, it’s available to many Californians. It could help save you money while keeping you covered.
Act quickly: Enrollment deadlines matter
60-day window and timing importance for a special enrollment period
It’s important to act quickly. Special enrollment periods are time sensitive, and waiting too long could result in a gap in coverage.
If you choose to continue coverage through COBRA or Cal-COBRA, please note that you have a 60-day window to enroll.†
Get support
Know your health coverage alternatives and health insurance continuation options
The good news is that you don’t have to figure this out on your own. Whether you’re comparing COBRA or Cal-COBRA to other options or need help understanding what’s available, Blue Shield is here to help.
Visit our Maintain coverage page to learn more and see which plan may be right for you. Then call us at (877) 892-7587 (TTY: 711), 8 a.m. to 5:30 p.m. PT, Monday through Friday, to speak with someone directly. Or you can contact your broker.
* Please note: Blue Shield of California does not provide COBRA administrator services. All employers are responsible for administering their own COBRA program.
† The 60-day period begins on the latest of the following dates:
- The date of your qualifying event;
- The date you were notified that you’re eligible to continue coverage under Cal-COBRA; or
- The date your previous employer’s health plan coverage ended or will end because of a qualifying event.
