Is COBRA always the best option after leaving a job in Severn, MD?

No, COBRA is often much more expensive than plans available through the Maryland Health Connection marketplace. While COBRA allows you to keep your existing employer-sponsored plan, you typically pay the full premium plus a 2% administrative fee. Marketplace plans, especially with subsidies, can offer comparable or better coverage at a lower cost.

What is the income limit for Medicaid in Maryland?

Maryland expanded Medicaid (known as Maryland Medicaid or HealthChoice) in 2014. Adults with household incomes up to 138% of the Federal Poverty Level (FPL) may qualify for comprehensive, low-cost or no-cost health insurance. For a single individual in 2026, this threshold is approximately $20,780 annually.

Can I get a PPO plan on the Maryland Health Connection marketplace in Severn?

Yes, PPO plans are available on-exchange through the Maryland Health Connection marketplace. Carriers like CareFirst of Maryland and CareFirst BlueChoice offer PPO and HMO variants, providing marketplace shoppers in Severn with a choice of plan structures beyond just HMOs and EPOs.

How long do I have to enroll in a new plan after losing job-based coverage?

Losing job-based health coverage is a Qualifying Life Event (QLE) that triggers a Special Enrollment Period (SEP). This typically gives you 60 days from the date your prior coverage ends to enroll in a new plan through Maryland Health Connection. It's crucial to act quickly to avoid gaps in coverage.

COBRA Alternative Health Insurance in Severn, Maryland

Updated July 2026 · MarylandPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Losing job-based coverage triggers a 60-day Special Enrollment Period to find new health insurance in Severn.
Maryland Health Connection offers subsidized plans that are often significantly more affordable than COBRA, which can cost 102% of your employer's full premium.
Severn residents with incomes up to 138% FPL (approx. $20,780 for an individual in 2026) may qualify for Maryland Medicaid/HealthChoice.
In 2026, 4 carriers offer marketplace plans in Rating Area 1, serving Severn, including PPO, HMO, and EPO options.

If you've recently lost job-based health insurance in Severn, Maryland, you might be considering COBRA to continue your coverage. While COBRA allows you to keep your existing plan, it can be prohibitively expensive, often requiring you to pay 102% of the total premium. Fortunately, you have strong alternatives through the Maryland Health Connection marketplace, where you may qualify for significant financial assistance to lower your monthly premiums and out-of-pocket costs. Losing your employer-sponsored coverage is a Qualifying Life Event that opens a 60-day Special Enrollment Period, allowing you to sign up for a new plan outside of the standard Open Enrollment period.

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Understanding Your Options: COBRA vs. Maryland Health Connection Plans

When facing a loss of job-based health insurance, it's crucial to compare COBRA with plans available through the Affordable Care Act (ACA) marketplace. COBRA (Consolidated Omnibus Budget Reconciliation Act) lets you continue your former employer's group health plan for a limited time, usually 18 months. The main benefit is continuity of care and keeping your current doctors and network. However, the cost is often the full premium, plus a 2% administrative fee, which can be thousands of dollars per month. In contrast, the Maryland Health Connection marketplace (Maryland's state-based exchange) offers a range of plans from private insurers, with financial subsidies available based on your income. These subsidies, known as Advance Premium Tax Credits (APTCs), can significantly reduce your monthly premiums. Many individuals and families find that an ACA plan with subsidies provides comparable or better coverage than COBRA at a much lower cost. Maryland also expanded Medicaid (known as Maryland Medicaid or HealthChoice) in 2014, making it available to adults with incomes up to 138% of the Federal Poverty Level. For a single individual in 2026, this is approximately $20,780 annually.

How Financial Assistance Lowers Your Costs in Severn

The availability of financial assistance is a primary reason to explore the Maryland Health Connection marketplace as a COBRA alternative. Subsidies are designed to make health insurance affordable for those who meet income criteria.

Household Income (2026 FPL)	Potential Assistance	Impact
Up to 138% FPL	Maryland Medicaid / HealthChoice	Comprehensive coverage with very low or no monthly premiums and out-of-pocket costs.
138% - 250% FPL	Significant Premium Tax Credits + Cost-Sharing Reductions (CSRs) on Silver plans	Substantially lower monthly premiums and reduced deductibles, copayments, and out-of-pocket maximums.
250% - 400% FPL	Moderate Premium Tax Credits	Lower monthly premiums, making plans more affordable than unsubsidized options or COBRA.
Above 400% FPL	No Premium Tax Credits	Eligible for full-price marketplace plans; still a potential alternative if COBRA is too expensive.

For individuals in Severn and Anne Arundel County, understanding these thresholds is key to finding the most affordable coverage. The median household income in Severn is $134,423, per U.S. Census Bureau ACS 2024 5-year estimates, indicating that many residents may not qualify for the highest levels of subsidies but could still benefit from tax credits.

Health Insurance Carriers in Severn

For 2026, 4 carriers offer marketplace plans in Rating Area 1, which covers Allegany, Anne Arundel, Baltimore, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Prince George's, Queen Anne's, Somerset, St. Mary's, Talbot, Washington, Wicomico, Worcester counties. Residents of Severn can choose from a variety of plans offered by these companies through the Maryland Health Connection:

CareFirst BlueChoice
CareFirst of Maryland
Optimum Choice
Wellpoint

These carriers offer a range of plan types, including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Exclusive Provider Organizations (EPOs). Importantly, PPO plans ARE available on-exchange in Maryland, providing greater flexibility for those who prefer to see out-of-network providers (at a higher cost) or do not wish to select a primary care physician. Severn, with a population of 58,402 and an uninsured rate of 6.6% per U.S. Census Bureau ACS 2024 5-year estimates, is part of Anne Arundel County. The county itself has a population of 598,166 and an uninsured rate of 4.7%. Residents have access to acute care facilities within the county, including Luminis Health Anne Arundel Medical Center, Inc in Annapolis and University of MD Baltimore Washington Medical Center in Glen Burnie, which are part of a broader network of providers available through these marketplace plans.

Choosing the Right Plan After Losing Coverage

When selecting a COBRA alternative, consider these factors:

Your Income: This determines your eligibility for subsidies and Medicaid. Use the Maryland Health Connection to get an accurate estimate of your potential financial assistance.
Your Health Needs: If you have ongoing medical conditions or anticipate significant healthcare use, a Gold or Silver plan might be a better value, despite higher premiums, due to lower deductibles and out-of-pocket maximums. If you're generally healthy, a Bronze plan might suffice for catastrophic coverage.
Provider Network: Check if your preferred doctors, specialists, and hospitals are in-network with the plans you're considering. Luminis Health Anne Arundel Medical Center, Inc and University of MD Baltimore Washington Medical Center are key facilities in Anne Arundel County to consider for network inclusion.
Prescription Drugs: Ensure your necessary medications are covered by the plan's formulary.
Plan Type (HMO, PPO, EPO): Decide whether you need the flexibility of a PPO, the lower costs of an HMO, or the balance of an EPO.

Remember, losing your job-based coverage is a Special Enrollment Period trigger. This means you have a limited window, typically 60 days from the loss of coverage, to enroll in a new plan through the Maryland Health Connection. Missing this deadline could mean waiting until the next Open Enrollment Period.

Next Steps: Secure Your Health Coverage

Navigating health insurance options can be complex, especially during a time of transition. Instead of defaulting to expensive COBRA coverage, explore the subsidized plans available through the Maryland Health Connection.

Here's how to proceed:

Confirm Your Special Enrollment Period: Verify the exact dates of your 60-day window after losing job-based coverage.
Estimate Your Subsidies: Visit marylandhealthconnection.gov or use their tools to estimate the financial assistance you might receive based on your household income and size.
Compare Plans: Review the plans offered by CareFirst BlueChoice, CareFirst of Maryland, Optimum Choice, and Wellpoint in Rating Area 1. Pay close attention to premiums, deductibles, copayments, and out-of-pocket maximums across different metal tiers (Bronze, Silver, Gold).
Consider Maryland Medicaid / HealthChoice: If your income is below 138% FPL, apply for Maryland Medicaid / HealthChoice for comprehensive, low-cost coverage.

A licensed health insurance producer can provide personalized guidance through this process at no cost to you. They can help you understand your eligibility for subsidies, compare plan benefits, and ensure you enroll in a plan that meets your needs and budget in Severn.

Frequently Asked Questions

Is COBRA portability a good option for me in Maryland?

COBRA provides portability by allowing you to continue your existing employer plan. However, "portability" in the context of COBRA often comes at a high cost, as you pay the full premium. For many Severn residents, plans through the Maryland Health Connection offer better financial value due to premium tax credits and cost-sharing reductions, even if it means changing plans or providers.

What if I'm pregnant and lost my job-based coverage in Maryland?

Losing job-based coverage is a Qualifying Life Event, allowing you to enroll in a new plan through Maryland Health Connection. Additionally, Maryland Medicaid (HealthChoice) covers pregnant women with household incomes up to 250% of the Federal Poverty Level, which is one of the highest thresholds among states. This coverage includes comprehensive prenatal care, labor and delivery, and extended postpartum care.

Can I get short-term health insurance as a COBRA alternative in Severn?

Short-term health insurance plans are available in Maryland but are generally not considered robust COBRA alternatives. They do not have to cover the essential health benefits mandated by the ACA, can deny coverage for pre-existing conditions, and often have very limited benefits. They do not qualify for subsidies. For comprehensive coverage, ACA plans on the Maryland Health Connection are usually a superior choice.

What is the Maryland Children's Health Program (MCHP)?

The Maryland Children's Health Program (MCHP) is Maryland's equivalent to CHIP, providing low-cost health coverage for uninsured children. In Maryland, MCHP covers children in families with incomes up to 300% of the Federal Poverty Level. This is a critical resource for families in Severn to ensure their children have access to necessary medical care.