COBRA vs Covered California: Which is Right for You?

What is COBRA Coverage?

COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to temporarily continue your employer's group health insurance after you lose your job or have your hours reduced.

Key COBRA Facts:

• Duration: Up to 18 months (36 months for some qualifying events)
• Cost: Up to 102% of the full premium (employer + employee portions)
• Eligibility: Companies with 20+ employees must offer COBRA
• Enrollment window: 60 days from losing coverage

COBRA vs Covered California: Key Differences

Cost Comparison Example

For a 40-year-old individual earning $50,000/year in California:

When Should I Enroll?

After losing employer coverage, you have 60 days to enroll in either COBRA or Covered California through a Special Enrollment Period.

Timeline Tips:

1. Note your coverage end date
2. Compare COBRA costs to Covered California within first 2 weeks
3. Use the Income Limit Calculator to estimate subsidies
4. Enroll before your 60-day window closes

Can I Switch from COBRA to Covered California?

Yes! You can switch from COBRA to Covered California under these circumstances:

• During Open Enrollment: Switch anytime during the annual enrollment period
• When COBRA Ends: Exhausting COBRA coverage qualifies you for Special Enrollment
• Qualifying Life Event: Marriage, having a baby, moving, etc.

How to Avoid Coverage Gaps

Here's how to ensure continuous coverage when transitioning from employer insurance:

1. Know your end date: Ask HR exactly when your employer coverage terminates
2. Apply early: Start your Covered California application before coverage ends
3. Choose your start date: Select coverage effective date to align with your end date
4. Keep COBRA as backup: You can elect COBRA retroactively if needed