In the Commonwealth of Pennsylvania, COBRA and Mini-COBRA coverage provides a way for some people to continue to receive health insurance if they are no longer eligible for health insurance through their current employer plan. COBRA insurance PA coverage means that the employer provides access and facilitates coverage, but employees pay the costs to continue the coverage for a set amount of time.
If you choose COBRA or Mini-COBRA health insurance in PA, you take on the full cost of the premium payment. For some people, COBRA benefits in PA could be less expensive if you choose policies through a private health insurer.
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COBRA for Pennsylvania Residents – COBRA Insurance PA
All employers who have 50 or more full-time employees must offer group health insurance in Pennsylvania. Small businesses that have under that number of employees may still offer health insurance. COBRA PA coverage comes into play if an employer offers insurance and, for a qualified reason, the employee no longer qualifies for that coverage.
Federal COBRA laws require that all businesses with 20 or more employers that offer group health insurance provide access to continuation of that plan for a set amount of time. PA Mini-COBRA requires that those who have 2 to 19 employees provide the same access to continuation of coverage to employees. Under this law, employers must provide access to coverage for at least 9 months after the employment ends.
What Is COBRA Insurance to You? How Does COBRA Insurance Work?
There are specific rules you must consider about COBRA and Mini-COBRA health insurance, as noted by the Commonwealth of PA:
- Changes to provider networks: Both COBRA options allow you to remain on the same plan, which means you keep the same doctors, hospitals, and other providers.
- Existing deductibles: You maintain your existing deductible, which means if you already met all of some of your out-of-pocket expenses, that carries over.
- Cost: COBRA and mini-COBRA costs are much higher. In 2025, your employer is also allowed to charge an additional 2% administrative fee for COBRA and a 5% administrative fee for Mini-COBRA.
You have limited time to act.
- You have 30 days to determine if you want Mini-COBRA coverage.
- You have 60 days to choose COBRA coverage if you are eligible for it.
- You have 60 days after the loss of employer group coverage to apply and enroll in a Pennie plan.
It is also essential to consider COBRA PA benefits decisions carefully. If you make a decision related to COBRA health insurance in PA and then you change your mind later, your costs may increase.
PA COBRA or Pennie?
If you are entitled to COBRA in Pennsylvania or PA mini COBRA, you do not have to choose. In many ways, consumers may benefit from moving to another policy that could reduce their costs. That includes choosing coverage through Pennie, the state’s healthcare marketplace. You may also be able to select your spouse’s group health insurance plan, or if you are over the age of 64, you may be eligible for early retirement.
Pennie is an alternative for health coverage for people who lost their coverage due to leaving their jobs or for other reasons. You may be able to switch to Pennie if you are qualified for COBRA insurance in Pennsylvania.
During the annual open enrollment period that runs from November 1 through January 15, you can make the switch to Pennie instead of COBRA Healthcare if:
- COBRA costs change because your former employer stops contributing
- Your COBRA coverage ends
- You want to end COBRA coverage early
Outside of open enrollment periods, you consider Pennie instead of COBRA coverage if:
- You have a qualifying special enrollment period
What Changes Apply to COBRA Insurance for 2025?
COBRA coverage and COBRA benefits continue the coverage you receive from your current health plan into the future. However, COBRA healthcare can change over time. For 2025, there are no major changes to most COBRA plans.
The average COBRA insurance premium cost will range from $400 to $700 per person, but this is dependent on many other factors.
How to Apply for COBRA in PA
How does COBRA insurance work, then? If you want to use it, COBRA medical insurance is facilitated through your employer. That means your employer will establish the option for you and help with payments.
However, you do not have to remain with COBRA. You can elect to choose a private health insurance policy that could reduce your costs considerably.
COBRA Insurance Costs in Pennsylvania
When you work for an employer who has 20 or more employees and who offers group health insurance, as required by federal law, your employer pays a portion of the cost of the employee plan. When you are no longer an employee there, or if you lose your coverage for some reason, such as reduced hours, then you can purchase COBRA coverage. That means you will pay your regular cost plus the amount your employer had been paying for your coverage.
In Pennsylvania, your employer is permitted to charge a two percent administrative fee to cover the costs of bookkeeping so you can maintain your coverage. Therefore, you might be responsible for up to 102% of the cost of maintaining COBRA health insurance in Pennsylvania.
Deciding if COBRA Health Insurance Pennsylvania is Your Best Option
If you are losing your employer-sponsored group health insurance coverage, COBRA Health Insurance in Pennsylvania might be the best option for your medical insurance coverage, as it allows you to keep the same coverage you are familiar with.
You will, however, be paying more for the coverage than you did through your employer because you must pay your employer’s share of the cost as well. However, even with the additional cost, you will still likely pay less for your coverage than you would for comparable coverage with an individual insurance policy.
How to Get Health Insurance After COBRA
Coverage through COBRA insurance in PA does not continue long term, and it may be too expensive to maintain long term. For that reason, it may be beneficial to consider options related to health insurance through a private insurance provider. Speak to a licensed insurance provider to learn more.
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