ACA Start Date

[Popeye]

So D-Day will be 01/05/2018! My employer coverage takes me through January per my HR benefits folks. I can take COBRA but the ACA plans are cheaper with the subsidies since I can keep my income down. Are there any potential issues waiting to sign up? Does anyone have overlap in these situations? Is that even allowed?

 

[GTFan]

No, you can always sign up on loss of coverage which your case definitely is. You'll be good to go with an ACA plan that starts 2/1/18, assuming you can find one that's decent in your area.

I think you still need to do it before the 15th to have coverage take effect 2/1, so do it right after the first of the year.

 

[FIREd]

Just make sure to complete your ACA application by 01/15 and you should be good to go.

 

[Popeye]

Ok, thanks! It looks to be the best option. Luckily i can get a good plan in my area. i am also eligible for an access only plan through Megacorp. It is more than twice what cobra costs but it would guarantee access in the future if needed.

 

[Mr._Graybeard]

You may have to jump through a couple hoops to verify your anticipated 2018 income, which likely will be quite a bit less than your income in 2017. I understand the process has gotten smoother than it was when DW and signed up in 2014 (the calendar year after I retired), but you'll want to make sure you have the issue nailed down to qualify for the subsidy.

 

[CRLLS]

According to https://marketplace.cms.gov/technical-assistance-resources/transitioning-from-employer-coverage.pdf, you can sign up as late as midnight on Jan 31st for continued coverage. You can, if you'd like, sign up as soon as 60 days prior to losing that coverage, which is now.

Transitioning to a Marketplace Plan while Minimizing Gaps in Coverage

• The effective date for Patrick’s Marketplace coverage will depend on when he chooses a plan: –

If he chooses a plan on or before his employer-sponsored coverage ends (in this case, May 31st), Patrick’s Marketplace coverage will begin on the first day of the month following his loss of his employer-sponsored coverage. For example, if he enrolls in a plan on May 13th, his coverage will begin on June 1st because of his coverage ending on May 31st. Note: Patrick can report his loss of employer-sponsored coverage up to 60 days in advance of the last date of coverage. –

If he chooses a plan after his employer-sponsored coverage ends, since the FFM gives an accelerated coverage effective date for an SEP based on loss of MEC, his coverage will begin on the first day of the month following plan selection. For example, if he enrolls in a plan on June 2nd, his coverage will begin on July 1st. Note: Patrick has 60 days after losing his employersponsored coverage to report it to the Marketplace and select a plan.

 

[Rianne]

So D-Day will be 01/05/2018! My employer coverage takes me through January per my HR benefits folks. I can take COBRA but the ACA plans are cheaper with the subsidies since I can keep my income down. Are there any potential issues waiting to sign up? Does anyone have overlap in these situations? Is that even allowed?

That's exciting, but can you take ACA if you are offered COBRA?

Just realized we can open an HSA this year b/c deductible is $12K. Glad I looked into that before 12/31/17. Have some medical bills in 2017 that are atrocious.

 

[bingybear]

That's exciting, but can you take ACA if you are offered COBRA?

Just realized we can open an HSA this year b/c deductible is $12K. Glad I looked into that before 12/31/17. Have some medical bills in 2017 that are atrocious.

Being offered cobra will not cause a problem for getting an ACA plan. If you take cobra, the you have to wait until open enrollment or cobra to run out to get an ACA plan. If you cancel or stop paying for cobra, then you have to wait for open enrollment.

Just because you have high deductibles does not mean you can contribute to an HSA. You have to have a qualifying health insurance plan. Typically these will identify themselves as being HSA compatible. If you have a plan with CSR, the CSR could make an HSA compatible none compatible. There are more requirements beyond deductibles that a HSA compatible insurance must meet.

 

[Rianne]

Just because you have high deductibles does not mean you can contribute to an HSA. You have to have a qualifying health insurance plan. Typically these will identify themselves as being HSA compatible. If you have a plan with CSR, the CSR could make an HSA compatible none compatible. There are more requirements beyond deductibles that a HSA compatible insurance must meet.

Health Equity just told me I can open an HSA because my deductibles are high. Wow, thank you bingybear! My insurance broker then told me we'd probably get audited if we contributed and paid 2017 medical bills with that money. I am assuming just because I opened the HSA, does not mean I contributed or am using that money for 2017 medical bills. These customer service agents sound like they're in high school. They have repeatedly told me it does not matter, if your deductibles are over $3K whatever that amount is, it's fine to open an HSA. The government site is not very clear on this either.