Question: I enrolled in COBRA when I was laid off from my previous employer in September, 2013. I have received a letter from the insurer stating that my policy will not be available after December 31 as it does not meet new federal requirements for 2014. Employees will be offered a choice of new plans to chose from for 2014. Will I be able to chose from one of these plans as a prior employee with COBRA coverage until my 18 months of COBRA coverage expires? The current premium with COBRA coverage is less than any of the quotes I have received from the current market exchange offerings.
Answer: Yes you can stay on COBRA if you prefer, but you will have to reevaluate your decision once you see the premium for the new ACA compliant group plan you are offered. The rate will probably be higher than the non-compliant plan.