Many headaches and challenges come with losing your job. One of the first may include a change in your health insurance. COBRA coverage may be an option. However, there are other options such as a plan that is covered under the Affordable Care Act (ACA). How can you decide which one to choose, and how do they compare? You might be surprised at how easy it is to make the right decision and Fika Insurance Group is here to help.

COBRA vs. ACA - How to Decide

There are many factors that can help you decide whether ACA or COBRA is right for you.

1. Think about the cost. Johnson states that COBRA is too costly for most people who have just lost their jobs. ACA plans are generally cheaper than COBRA rates. Johnson says that premium subsidies can be obtained if your adjusted gross income meets the guidelines, the amount of the subsidy that lowers your monthly premium will depend on your age, adjusted gross income, ZIP code, and who is on your tax return.

2. Check your deductible. Your deductible will be reset if you switch to an ACA policy. However, if you choose COBRA, any progress made towards your annual deductible while employed will be retained.

Keith states that when deciding between COBRA or ACA coverage, they should consider the amount they have spent on out-of-pocket expenses, their expectations of needing additional care, and the time of year.

If you are near the end of your plan year or calendar, signing up for COBRA might be a good idea. Then, you can switch to ACA coverage. You can calculate this by adding up the COBRA premiums for the remainder of the year to the out-of-pocket cost associated with an ACA plan.

Your remaining COBRA payments may be lower if you have met your deductible or are close to reaching your out-of-pocket maximum.

3. Consider whether switching doctors is something you are open to. Johnson says, "No matter what type of plan you have you must check if your doctor's in network." It's important to verify that your network is up to date.

Make sure your doctor accepts the plan you choose. Keith says this is particularly important if you have chronic conditions or ongoing healthcare needs and want to keep access to your providers for continued care.

4. Timing is important. People who lose their job-based insurance generally have a 60-day special enrollment period through ACA Marketplace. Keith states that this applies even if COBRA is offered to you. This means that you will have approximately two months to decide what to choose.

Keith explains that COBRA coverage must be maintained until the policy expires or the annual ACA Open Enrollment Period. If you decide to leave COBRA coverage, you can't change to marketplace coverage.

Which should you choose?

Answers will vary depending on your current situation. This includes everything from the medical needs of your family to the number of people on your tax return. The good news is that there are other options. The good news is that you don't have the responsibility of making this decision on your own. Local licensed professionals from Fika Insurance Group can assist you in reviewing your options and choosing the right plan for you. Call us at (864) 397-8866 or go online at fikainsurance.com.