COBRA Continuation Guide
A resource explaining COBRA health insurance continuation options for actors between qualifying periods
Overview
The COBRA Continuation Guide explains how actors can maintain their health insurance coverage during gaps between qualifying employment periods. COBRA allows individuals to continue their employer-sponsored or union health plan coverage temporarily by paying the full premium themselves.
The guide covers eligibility requirements, enrollment deadlines, coverage duration, and cost expectations. Understanding COBRA is critical for actors who lose health coverage when their union earnings dip below the qualification threshold.
How It Works
COBRA coverage can be expensive because the individual pays the full premium that was previously subsidized by an employer or union plan. However, it provides continuity of coverage that prevents gaps, which is important for actors with ongoing medical needs.
The guide is a free informational resource. COBRA premiums themselves vary based on the underlying plan and can range from several hundred to over a thousand dollars per month.
Who Uses It
Review this guide before you face a coverage gap so you understand your options and deadlines in advance. The enrollment window for COBRA is limited, and missing it can leave you without coverage during a critical transition period. COBRA is particularly relevant for actors who cycle in and out of SAG-AFTRA health plan eligibility based on their annual covered earnings — when you lose union health coverage, COBRA gives you the option to continue that same coverage temporarily while you work to re-qualify. Understanding COBRA before you need it eliminates panic-driven decisions during what is often already a stressful time of reduced income. The guide also helps actors compare COBRA costs against ACA marketplace alternatives, which may be more affordable depending on income level and location.
Pricing & Plans
The COBRA Continuation Guide is a free informational resource with no cost to access. However, COBRA coverage itself is expensive because the individual pays the full premium that was previously subsidized by the employer or union plan, plus an administrative fee of up to two percent. For SAG-AFTRA health plan coverage continued through COBRA, monthly premiums can range from approximately $600 to over $1,500 per month depending on the coverage level and whether the plan covers an individual or a family. COBRA coverage can be maintained for up to 18 months in most cases, and up to 36 months in certain circumstances such as disability. It is important to compare COBRA costs with ACA marketplace plans, as actors with reduced income may qualify for substantial subsidies that make marketplace coverage significantly cheaper than COBRA. The key advantage of COBRA is continuity — your doctors, prescriptions, and coverage terms remain exactly the same, which matters if you are in the middle of treatment or have established relationships with providers.
Pros & Cons
What's Great
COBRA's greatest value is providing seamless continuity of coverage — you keep the same plan, the same network of doctors, and the same prescription drug formulary, which eliminates the disruption of finding new providers during a coverage transition. The guide clearly explains the enrollment timeline and deadlines, which is critical because COBRA enrollment is time-sensitive and missing the window can result in a permanent loss of the continuation option. Having COBRA as a safety net allows actors to take the financial risk of pursuing their career knowing that a temporary dip in earnings does not have to mean a catastrophic loss of health coverage. The guide's comparison of COBRA with alternative coverage options helps actors make an informed financial decision rather than defaulting to COBRA out of fear or inertia. COBRA coverage counts as qualifying coverage under the ACA, which means actors using it avoid any tax penalties associated with gaps in insurance. The retroactive enrollment feature — where you can delay COBRA enrollment and still activate it retroactively if you incur medical expenses — provides a strategic option for actors willing to take a calculated risk.
What Could Be Better
COBRA premiums are often shockingly expensive for actors who were previously accustomed to the subsidized cost of their union health plan, and the sticker shock alone causes many actors to forgo continuation coverage even when they need it. The 60-day enrollment window is strict, and actors who are dealing with the stress of reduced income and career uncertainty may miss the deadline, permanently losing access to this safety net. COBRA is a temporary solution — 18 months in most cases — and does not solve the underlying problem of actors needing to re-qualify for their union health plan or find alternative long-term coverage. The guide, while informative, cannot account for every actor's individual circumstances, and the interaction between COBRA, ACA marketplace coverage, and union re-qualification can be complex enough to require professional guidance. Actors who elect COBRA and then fail to make timely premium payments can lose coverage retroactively, creating potential exposure for medical bills incurred during the lapse. Additionally, COBRA does not provide any new benefits — it simply continues existing coverage, so actors who were dissatisfied with their plan cannot use COBRA as an opportunity to switch to better coverage.
Our Recommendation
Every SAG-AFTRA member who has ever qualified for the union health plan should understand COBRA before they need it — reading this guide when you are healthy and employed prepares you for a situation that will feel much more stressful if you encounter it unprepared. COBRA is most valuable for actors who are in the middle of ongoing medical treatment, have chronic conditions that require continuity of care, or who are close to re-qualifying for their union health plan and just need to bridge a short gap. If your income has dropped significantly and you are not in the middle of treatment, compare COBRA premiums with ACA marketplace plans first — marketplace subsidies based on income can make alternative coverage dramatically cheaper than COBRA. Actors who are generally healthy and willing to accept some risk should consider the retroactive enrollment strategy, where you wait to activate COBRA until you actually need medical care during the 60-day window. For comprehensive guidance on all health insurance options beyond COBRA, see the Actor's Health Insurance Guide resource on this site.
Pro Tips
Read this guide the moment you receive your union health plan qualification results for the year, so you know immediately whether you will need to consider COBRA for the upcoming coverage period. Keep the COBRA enrollment paperwork in an accessible location and note the enrollment deadline on your calendar with multiple reminders — missing this deadline is irreversible. Before committing to COBRA, get quotes from HealthCare.gov or your state marketplace to compare costs — if your income has dropped below the ACA subsidy threshold, marketplace coverage may be hundreds of dollars cheaper per month. If you elect COBRA, set up automatic premium payments to avoid accidentally lapsing coverage due to a missed payment, which can happen easily during a busy production schedule. Consider speaking with The Actors Fund financial wellness counselors, who can help you evaluate COBRA versus marketplace options in the context of your overall financial situation. Remember that COBRA enrollment can be done retroactively within the 60-day window, which means you can strategically delay enrollment and only activate it if you incur medical expenses — but understand the risk you are taking with this approach and make sure you have the funds to pay retroactive premiums if needed.