COBRA can be expensive, so it makes sense to wonder if you can drop it. Yes, you can cancel COBRA at any time. What matters is what you've lined up before you do.
The catch with dropping COBRA
Marketplace plans generally require open enrollment or a qualifying life event. Losing job coverage is one, and so is COBRA running out because you reached the end of its maximum period. Choosing to cancel COBRA early usually isn't one. If you cancel outside open enrollment and haven't lined up another plan, you may have to wait until the next open enrollment, or look at private plans, which are underwritten.
The safe order
- Line up the new plan first. Get an approval or enrollment confirmation in hand before you cancel anything.
- Match the dates. New plans often start on the first of a month, and COBRA is billed monthly. Ask for the new plan to start the day after COBRA ends so there's no gap.
- Then cancel COBRA. Do it in writing, effective on that date, and keep a copy.
- Check the doctors. Make sure your doctors, hospital and prescriptions are covered on the new plan.
When to keep COBRA
COBRA can be the right call when you're in the middle of treatment, have surgery or a hospital stay coming up, you've already paid most of this year's deductible, or a new private plan hasn't been approved yet. In those cases a few more months can cost less than starting over on a new deductible. If you're healthy and haven't used much of your plan, switching is usually worth a look.
If you already dropped it
Don't assume you're out of options. Depending on your situation you may still have a private plan, a special enrollment period for another reason, or open enrollment coming up. Call us and we'll look at what's available for your dates.
If you're still deciding, start with why COBRA is so expensive and how to pay less, or see the full page on health insurance after COBRA.
This article is general information, not a guarantee of coverage or pricing. Plan availability, benefits, and eligibility vary by state and individual. Some private plans are medically underwritten and do not include all ACA essential health benefits.