How long can freelancers keep COBRA coverage?

Freelancers can maintain COBRA coverage for up to 18 months after leaving their employer. In some cases, such as disability or specific qualifying events, this period may be extended up to 36 months.

What are the alternatives to COBRA for freelancers?

Freelancers have several alternatives to COBRA including ACA Marketplace plans (which may offer subsidies based on income), professional association health plans, health sharing ministries, and short-term health insurance plans. ACA plans through Aura Insure often provide more affordable options with comprehensive coverage.

When should freelancers choose COBRA over other insurance options?

COBRA may be the best choice when you're in the middle of medical treatment, want to keep your current doctors, need to maintain existing coverage without changes, or require temporary coverage while exploring other options. However, ACA plans through the Marketplace might offer more affordable alternatives with similar coverage.

Can I switch from COBRA to an ACA plan mid-year?

Yes, you can switch from COBRA to an ACA plan during the annual Open Enrollment Period or if you qualify for a Special Enrollment Period. Exhausting COBRA coverage also qualifies you for a Special Enrollment Period to choose a new plan.

Are COBRA benefits the same as my previous employer coverage?

Yes, COBRA provides identical coverage to what you had under your employer's plan, including the same network of providers, prescription drug coverage, and any dental or vision benefits you were enrolled in previously.

What are the deadlines for enrolling in COBRA coverage?

You have 60 days from either the date you lose coverage or the date you receive your COBRA election notice (whichever is later) to elect COBRA coverage. Once elected, you have 45 days to make your first premium payment.

Can I get financial assistance for COBRA premiums?

While COBRA itself doesn't offer subsidies, you may qualify for significant premium tax credits through ACA Marketplace plans. Aura Insure can help you compare COBRA costs with subsidized ACA plans to find the most cost-effective option for your situation.

Understanding COBRA Health Insurance: A Comprehensive Guide for Freelancers in 2025

Q: How much does COBRA coverage cost for freelancers?

COBRA coverage typically costs your previous premium plus up to 102% of the employer's portion. For example, if your total insurance premium was $800 monthly with your employer paying $600 and you paying $200, your COBRA premium would be approximately $816 monthly (total premium plus 2% administrative fee).

Professional freelancer reviewing COBRA health insurance documents at desk — Understanding COBRA benefits is crucial for freelancers transitioning from traditional employment

As a freelancer transitioning from traditional employment, understanding your health insurance options is crucial. COBRA (Consolidated Omnibus Budget Reconciliation Act) provides a valuable safety net for maintaining health coverage during this transition. Let's explore everything you need to know about COBRA coverage in 2025.

What is COBRA and How Does It Work for Freelancers?

COBRA allows you to maintain your employer-sponsored health insurance after leaving your job. For freelancers making the leap to self-employment, this means:

Continuation of your existing health coverage for up to 18 months
Access to the same healthcare providers and benefits
No need to meet new deductibles mid-year
Coverage for pre-existing conditions

Understanding COBRA Benefits for Self-Employed Individuals

Key benefits include:

Identical coverage to what you had while employed
Coverage for dental and vision plans (if previously enrolled)
Protection for your entire family if they were on your plan
No waiting periods or coverage gaps

Navigating COBRA for Freelancers: Important Deadlines

Time-sensitive aspects to remember:

60-day election period to decide on COBRA coverage
Coverage retroactive to the date of loss of previous insurance
45-day window for first premium payment
Monthly premium payments thereafter

COBRA vs. Other Insurance Options for Freelancers

Compare your choices:

COBRA: Maintains existing coverage but typically costs more
ACA Marketplace: Often more affordable with possible subsidies
Professional associations: May offer group rates
Health sharing ministries: Alternative coverage options

Making the Right Choice: When COBRA Makes Sense

COBRA might be your best option if:

You're in the middle of treatment
Your preferred doctors aren't in other networks
You need temporary coverage while building your business
You want to maintain existing coverage without changes

Frequently Asked Questions

Q: How much does COBRA coverage cost for freelancers?

A: COBRA costs include your previous premium plus up to 102% of the employer's portion.

Q: Can I switch from COBRA to other coverage later?

A: Yes, you can switch during open enrollment or if you qualify for a special enrollment period.

Q: What happens after COBRA coverage ends?

A: You can enroll in marketplace coverage, join a professional association plan, or explore other options.

Need help finding the right health insurance coverage for your freelance journey?

Contact Aura Insure today for a free consultation and compare COBRA with other available options. Our licensed agents can help you make an informed decision that protects both your health and your wallet.

Contact Aura Insure Today!

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The Role of COBRA in Health Insurance for Freelancers