got the pink slip

[ER_Hopeful]

got called in a 1-on-1 meeting yesterday, work has been slow and that was my last day. Wasn't too surprised though.

They'll keep me on payroll until end of Feb. With a severance package plus unused vacation days, after tax and deduction, I think that should cover 3 to 4 months of expenses. Mortgage has only $12k left, wheewww!

My only concern is health insurance (if I want to take a few months off), last I check there's no penalty for skipping HS in 2019. What are my options? If I go to the marketplace which is income based, I think, I'd have to pay crazy rates because of my FORMER relatively high income. We're a family of 4 (wife is a SAHM, plus two young teens) , I'd prefer to have some kind of HS, although skipping it is always an option.

thanks.

 

[pb4uski]

Your subsidy would be based on your projected 2019 income, not your former relatively high income.

Also, you can take advantage of the 60-day COBRA window if you just want to take a couple months off. Also, how much does your COBARA coverage cost?

You have 60 days to decide whether to sign up for a COBRA plan. COBRA lets your dependents approve coverage even if you decline COBRA.

If you reject COBRA, you can still get it later as long as it's within the 60-day window. Your coverage is retroactive to the qualifying event, such as your last day.

One cost-effective option is to wait to get COBRA until the end of the 60-day window. That way you won’t pay premiums, but you can still get retroactive coverage back to the qualifying date if you find you need COBRA.

You must pay the premiums for the entire period in which you’re eligible even if you sign up 60 days later. In other words, if you sign up on day 59, you still have to pay all the premiums from the 59 days.

You can cancel the COBRA coverage at any time within 18 months. You’re not locked in. You will likely want to drop COBRA once you become eligible for a different health plan, such as if you get another job.

If you stop paying premiums, COBRA coverage will end automatically. Make sure to pay your premiums promptly.

 

[ncbill]

Use a broker, tell them your income estimate for 2019 (only two months?)

 

[ER_Hopeful]

Also, how much does your COBARA coverage cost?

cheapest plan is about $1500 for the 4 of us.

 

[Aerides]

For a short term blip like you anticipate, I'd vote cobra.
You can sign up in a minute and stay on your existing insurance, docs, deductible, etc. No stress, no worry. Since you are only thinking a few months, I'd just suck up the cost especially with kids.

 

[MBAustin]

For a short term blip like you anticipate, I'd vote cobra.
You can sign up in a minute and stay on your existing insurance, docs, deductible, etc. No stress, no worry. Since you are only thinking a few months, I'd just suck up the cost especially with kids.

+1

 

[ER_Hopeful]

if i wanna compare shop, is ehealthinsurance.com a good place to check?

 

[Huston55]

OP-

+2 on COBRA. It’s easy to enroll & retain all your current medical providers, especially for a short period. So, I’d recommend it even if it’s just a 30-90 day bridge to ACA or a new employer. I didn’t see what your long term plans are regarding future employment. I’m guesssing, with two kiddos in HS/entering college, that you’ll seek future employment. In that case, COBRA is just a bridge btwn employers. We used COBRA when we FIREd & it worked great. For us, it was a short term bridge to retiree healthcare (TriCare).

 

[Aerides]

So, I’d recommend it even if it’s just a 30-90 day bridge to ACA or a new employer.

Just a minor correction: You cannot cobra and then swap to ACA until either the end of cobra, or the next enrollment period. So, you can take it now, and either keep it for 18 months, or pick up an ACA plan starting Jan1, 2020.

But you can't drop COBRA in 90 days and go on the ACA then as a qualifying event. You can go on the ACA leaving your job, now, but you can't go Job>Cobra> ACA outside of the enrollment period.

Should be a non-issue for the OP who expects to get re-employed this year, but for anyone else reading, fyi.

 

[Texas Proud]

Another thing... the rates are what they are... there is no difference based on your income.. the question is how much credit you get...


I would suggest that you do not worry about that and get it all back on your tax return... then you do not have to put anything down for income..


Just be careful in that the deductible if pretty high if you can not get help on copays etc...

 

[ER_Hopeful]

I would suggest that you do not worry about that and get it all back on your tax return... then you do not have to put anything down for income..

not following, can you explain what you meant by that?

 

[ER_Hopeful]

Just a minor correction: You cannot cobra and then swap to ACA until either the end of cobra, or the next enrollment period. So, you can take it now, and either keep it for 18 months, or pick up an ACA plan starting Jan1, 2020.

But you can't drop COBRA in 90 days and go on the ACA then as a qualifying event. You can go on the ACA leaving your job, now, but you can't go Job>Cobra> ACA outside of the enrollment period.

Should be a non-issue for the OP who expects to get re-employed this year, but for anyone else reading, fyi.

can subsidy be applied to COBRA? I'm guessing no, but figured I'd ask anyway.

 

[Jerry1]

Another vote for COBRA. It will give you time to clear your head and figure out how best to go forward in all facets of your life, not just how to obtain health insurance. Best wishes on the next phase of your life and career. This might be the best thing that ever happened to you.

 

[copyright1997reloaded]

And yet another vote for cobra. Don't mess around with this in the heat of the moment. When I left Mega Corp, I went on Cobra. Luckily. Six months later, my previously very healthy child developed serious health issues. Luckily I was covered with my (good but expensive) employers coverage.

Things are much much better now, but at one point three emergency surgeries in three weeks to the tune of over $100K were involved. You do not want to be worried about how it will be paid for if that happens.

As mentioned, if you do go cobra, you are in and can't go ACA until the next enrollment date. Hopefully you will be back working by then.

 

[BeachOrCity]

Your subsidy would be based on your projected 2019 income, not your former relatively high income.

Clarifying. You "Advanced" premium subsidy is based on past income and projection of current year. But your "Actual" premium subsidy is based on your ACTUAL income in 2019 (MAGI). The former is just what you pay every month when the gov't fronts you the money, the latter is what happens and you really pay after filing taxes. The latter is what really counts. IF the advanced premium subsidy is wrong, you owe it back (if you are over subsidy cut off).

You need to determine your MAGI for 2019 quickly. If eligible for ACA subsidies based on that you need to go that route. If not subsidy eligible go COBRA.

Note, DO NOT rely on the healthcare.gov or state exchange to "TELL YOU" what your subsidy is. You have to calculate this manually because of the change in employment status / severance.

So read up on what is included in MAGI, calculate that number then determine if you are under 400% of federal poverty level for 2019 and which way you should go.

 

[eroscott]

Clarifying. You "Advanced" premium subsidy is based on past income and projection of current year. But your "Actual" premium subsidy is based on your ACTUAL income in 2019 (MAGI). The former is just what you pay every month when the gov't fronts you the money, the latter is what happens and you really pay after filing taxes. The latter is what really counts. IF the advanced premium subsidy is wrong, you owe it back (if you are over subsidy cut off).

You need to determine your MAGI for 2019 quickly. If eligible for ACA subsidies based on that you need to go that route. If not subsidy eligible go COBRA.

Note, DO NOT rely on the healthcare.gov or state exchange to "TELL YOU" what your subsidy is. You have to calculate this manually because of the change in employment status / severance.

So read up on what is included in MAGI, calculate that number then determine if you are under 400% of federal poverty level for 2019 and which way you should go.

I think you can use this spreadsheet to help with the underlined. I found it way back when.
https://docs.google.com/spreadsheets/d/1kXmre8cq75AZhwbP_AWpHKzKLbzruOo6fOTZ5ljnT4o/edit?usp=sharing

Fed Poverty Guidelines for 2018: https://www.parkviewmc.com/app/files/public/2743/2018-fpl-guidelines.pdf

 

[akck]

I suggest you hold off enrolling in cobra until you are close to day 60 or if a medical need arises before then. That way, if your job situation improves quickly, you may not need the coverage. That’s what I told my son to do when he changed jobs and his new coverage required a month on the job before coverage started.

 

[rayinpenn]

Sorry to hear abut the job loss... “go get em” and good luck.

 

[street]

Clarifying. You "Advanced" premium subsidy is based on past income and projection of current year. But your "Actual" premium subsidy is based on your ACTUAL income in 2019 (MAGI). The former is just what you pay every month when the gov't fronts you the money, the latter is what happens and you really pay after filing taxes. The latter is what really counts. IF the advanced premium subsidy is wrong, you owe it back (if you are over subsidy cut off).

You need to determine your MAGI for 2019 quickly. If eligible for ACA subsidies based on that you need to go that route. If not subsidy eligible go COBRA.

Note, DO NOT rely on the healthcare.gov or state exchange to "TELL YOU" what your subsidy is. You have to calculate this manually because of the change in employment status / severance.

So read up on what is included in MAGI, calculate that number then determine if you are under 400% of federal poverty level for 2019 and which way you should go.

Very well explained, good advice.

 

[Spock]

Just a minor correction: You cannot cobra and then swap to ACA until either the end of cobra, or the next enrollment period. So, you can take it now, and either keep it for 18 months, or pick up an ACA plan starting Jan1, 2020.

But you can't drop COBRA in 90 days and go on the ACA then as a qualifying event. You can go on the ACA leaving your job, now, but you can't go Job>Cobra> ACA outside of the enrollment period.

Should be a non-issue for the OP who expects to get re-employed this year, but for anyone else reading, fyi.

There might be another twist in there, at least for me. I got 12 months of employee rate COBRA (same cost as I was paying via payroll deduction while an active employee). After 12 months, the COBRA rate went to the 102% of employer cost number. The rate change at 12 months was an ACA special enrollment qualifying event.

 

[Aerides]

I would suggest that you do not worry about that and get it all back on your tax return... then you do not have to put anything down for income..

not following, can you explain what you
meant by that?

What TP means was you can pay full ACA and then get the subsidy back as a tax refund, vs. getting the reduced OOP cost, if your year end income qualifies when filing taxes.

can subsidy be applied to COBRA? I'm guessing no, but figured I'd ask anyway.

No, it's not a generic health insurance rebate. Subsidies are only available to plans purchased via the ACA exchange.

I got 12 months of employee rate COBRA (same cost as I was paying via payroll deduction while an active employee). After 12 months, the COBRA rate went to the 102% of employer cost number. The rate change at 12 months was an ACA special enrollment qualifying event.

Thanks, yes I can see that being another event. But without that, you can't just take cobra and then say, get to July and go "eh I'll flip to ACA now".

 

[Texas Proud]

not following, can you explain what you meant by that?

Arides explained, but I will try and do a bit more...


There is nothing stopping you from signing up for and ACA plan.. you can make a million dollars a year and sign up... you just pay full premiums...


The question is your ACA credit... you can get that monthly to help pay for your premiums OR you can get it all in a lump sum on your tax return...


The first couple of years I paid 100% of the premiums and got a big tax refund... then the silver plans became more affordable so I went with the plans that offer help on copays and deductible so I had to tell them my income.. but by then it was well established...


People often confuse the cost of insurance with the credit.. they are two separate numbers...