Just because you may be entitled to elect COBRA or Mini-COBRA coverage, does not mean you must elect it. You may have other, more affordable options!
You may choose coverage through Pennie®, another group health plan you're eligible for (such as a spouse's plan) or Medicare coverage if you are over the age of 64 or are an early retiree.
Here are some things to consider when deciding which option is best for you:
- Changes to Provider Network: COBRA and Mini-COBRA let you stay on the same plan you had, so you'll have the same provider network, being able to keep the same doctors, hospitals, and other medical providers as you had before. Changing plans may change that network.
- Existing Deductibles: If you've already satisfied your deductible and out-of-pocket expenses, electing COBRA or Mini-COBRA means you do not start over again in the same plan year. Switching to other coverage may start a new deductible period.
- Cost: COBRA and Mini-COBRA can be very expensive. In both cases, you'll need to pay the amount you were previously paying for coverage and, will likely also be paying the portion of the premium your former employer paid on your behalf. In addition, your employer can add an administrative fee, for COBRA your employer can add a 2% administrative fee. Mini-COBRA may include up to a 5% administrative fee.
It's important to act promptly, you have a limited time to make a selection:
- You have 30 days to choose whether or not to elect Mini-COBRA coverage.
- You have 60 days to choose whether or not to elect COBRA coverage.
- You have 60 days after the loss of your employer group coverage to apply and enroll in a Pennie plan because your loss of group coverage triggers a Pennie Special Enrollment Period.
Make your inital decision carefully, changing your mind later may result in increased costs or the loss of options:
If you first choose COBRA or Mini-COBRA and then decide you'd rather have coverage through Pennie, you must wait until either: Pennie's Open Enrollment Period, the cost of your Mini-COBRA coverage changes, or until your COBRA or Mini-COBRA coverage ends.
If you are eligible for Medicare but choose to enroll in COBRA, you may be subject to a late enrollment penalty when you later sign up for Medicare Part B.
Differences Between COBRA & Mini-COBRA
- Federal vs. State Law - COBRA is a federal law. Mini-COBRA is a Pennsylvania law modeled after the federal COBRA law.
- Employer Size - COBRA applies to employees at businesses with 20 or more employees. Pennsylvania's Mini-COBRA applies to employees at businesses with 2-19 employees.
- Length of Coverage - COBRA allows for the purchase of continuation health coverage for 18 months (or, in some cases, 36 months) after employment ends. Pennsylvania's Mini-COBRA is for nine months.
- Cost - In both cases, you'll need to pay the amount you were previously paying for coverage and, will likely also be paying the portion of the premium your former employer paid on your behalf. In addition, your employer can add an administrative fee, for COBRA your employer can add a 2% administrative fee. Mini-COBRA may include up to a 5% administrative fee.
- Coverage - COBRA allows you to continue on the same medical, dental, and vision plans you had while with your former employer. Mini-COBRA only requires the continuation of your medical insurance plan.
- Eligibility - If you are eligible for Medicare, federal COBRA laws allow you to enroll in COBRA if you choose. Mini-COBRA does not so, when or if you become eligible for Medicare you will no longer be eligible for Mini-COBRA.
Need More Help?
For more help or to get answers to your insurance-related questions, our Consumer Services Bureau can help! Visit our Need Help page.