If you recently left your job, either voluntarily or involuntarily, you probably received documentation related to COBRA health insurance. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 and requires that your employer extend health coverage to you for a period of time. Here’s a brief introduction to COBRA health insurance.

What’s the COBRA Health Insurance Hack? You have 60 days to decide whether you want COBRA health insurance or not and if you do, the coverage applies retroactively to when you left your job. This gives you a 60 day window to look for more insurance, compare costs, and ultimately decide what you want. This also gives you a 60 day time period of essentially “free” insurance. How is it free?

If you need insurance in that time, simply elect COBRA insurance and you’re covered. If you didn’t need it, don’t elect coverage until after the 60 days and you won’t have paid a penny. You basically only pay for insurance if you need it in that two month window!

That’s the COBRA health insurance hack.