How to Switch Insurers From COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to continue your current health coverage for a set period of time (18 to 36 months). When you leave a job and continue your group health coverage under COBRA, you go from paying a portion of the premiums to paying up to 102 percent of the premiums. These rates can be straining on your finances, so switching to a more cost-effective health plan often becomes a necessity.

Instructions

Switching Insurers During COBRA

• 1

  Get quotes from multiple insurance carriers. Go online for quotes from agencies such as eHealthInsurancecom or COBRA-Insurance.com. Contact a local insurance agent or broker and request a quote, which should not cost you any money. You must provide personal information such as age, date of birth and ZIP code to obtain a quote.

• 2

  Select, from among the plans, a few that fit your budget.

• 3

  Review the benefits of the plans you selected. Determine which plan offers the best benefits for your situation. Working with an insurance agent or broker is helpful, as he will be able to offer advice that makes your choice easier, and he can explain how to adjust the plans based on your financial needs. For example, choose a higher deductible for a lower monthly insurance cost.

• 4

  Apply for the health plan you choose. Fill out the application and provide all the necessary information. You will be able to obtain a guaranteed issue policy regardless of pre-existing conditions as long as you have had coverage for the preceding18 months.

Switching Isurers After COBRA

• 5

  Decide whether you want to continue with your current insurer or go with somebody else when your COBRA coverage period expires.

• 6

  Request a conversion of your current policy to an individual policy that is guaranteed under the Health Insurance Portability and Accountability Act, or HIPAA, regulations if you decide to stay with your current coverage provider. Contact your plan administrator to request this conversion.

• 7

  Get quotes either online or from a local insurance agent or broker for new plans, if you decide to move away from current insurance provider. If you have pre-existing conditions, apply for HIPAA-guaranteed issue offerings, which are the top two plans all carriers must offer, regardless of pre-existing conditions, to those who qualify.

• 8

  Review the quotes and coverages available to you to determine that plan that fits your needs best in terms of cost and benefits.

• 9

  Apply for the HIPAA guaranteed-issue plan within 60 days after your COBRA plan expires, provide your certificate of credible coverage, and you will be issued the plan on a guaranteed issue basis regardless of any pre-existing conditions. Obtain the certificate of creditable coverage, which proves that you had health insurance continually for at least 18 months, from your COBRA plan administrator.