Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
COBRA Question
Old 11-05-2013, 01:46 PM   #1
Recycles dryer sheets
 
Join Date: Feb 2012
Posts: 76
COBRA Question

Suppose a person retires at the end of 2013 and desires to get COBRA coverage for insurance from their employer, at least until a decision on whether it is cheaper to use an ACA plan can be made.

What happens if that employer-provided plan was a high deductable plan with HSA that gets disallowed under the ACA minimum policy requirements?

I would think some type of COBRA coverage would still be required to be provided, but am not sure.
__________________

__________________
Dwhit is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-05-2013, 02:32 PM   #2
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
COBRA is still required if the employer offers employees heath insurance. If the employer plan changes, I'm pretty sure your COBRA plan would change with it. I think that if the employer drops their plan then COBRA goes away. I recall an issue like this with a company going bankrupt a few years ago.

Unless you worked for one of the companies with bare bones plans, your company plan should meet the ACA requirements. An exception would be where companies don't have birth control or abortion coverage. This will work its way to the Supreme Court in another year or so.

COBRA with my company is cheaper than the ACA policies for couples over 50 or so. Older people win with COBRA but it goes away in 18 months. Younger families would probably save money with the ACA exchange plans but their deductibles would be significantly higher. Generalizations are difficult because the coverages by different employers vary considerably.
__________________

__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 11-05-2013, 02:45 PM   #3
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
I just looked at my health care options for after I leave my job. COBRA will be $429 for a very rich plan, or I can go with ACA and pay $265 for a 2k/6k plan. I will also qualify for a subsidy as my income will be under $35k once I leave work. My question is can I apply that subsidy to the COBRA plan?
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 11-05-2013, 02:49 PM   #4
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,492
Quote:
Originally Posted by nun View Post
My question is can I apply that subsidy to the COBRA plan?
Subsidies only apply to plans acquired through the exchange.
__________________
MichaelB is offline   Reply With Quote
Old 11-05-2013, 02:50 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
Quote:
Originally Posted by nun View Post
My question is can I apply that subsidy to the COBRA plan?
Don't think so. Subsidies are only for plans on the exchanges
__________________
rbmrtn is offline   Reply With Quote
Old 11-05-2013, 05:17 PM   #6
Recycles dryer sheets
 
Join Date: Feb 2012
Posts: 76
So I got on Healthcare.gov and registered. I went on to the place where I could compare available plans. The website seemed very easy and responsive so far, not sure what all the fuss is about. Maybe it gets tougher to actually enroll.

I did talk to someone at the insurer I was looking at enrolling with. They said I could apply for an individual plan that would start December 1, 2013, and I d get coverage thru 2014 at less than half the cost of the healthcare.gov plans that start January 1, 2014. I am not sure this is good info, though I plan to look into it further. She said I would have to apply by November 15th.
__________________
Dwhit is offline   Reply With Quote
Old 11-05-2013, 06:07 PM   #7
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,228
Quote:
Originally Posted by nun View Post
I just looked at my health care options for after I leave my job. COBRA will be $429 for a very rich plan, or I can go with ACA and pay $265 for a 2k/6k plan. I will also qualify for a subsidy as my income will be under $35k once I leave work. My question is can I apply that subsidy to the COBRA plan?
If you have employee insurance (COBRA counts), you are not eligible....given the problems with ACA, I would count my blessings, hopefully in 18 months when your COBRA runs out they'll have issues worked out.
__________________
teejayevans is online now   Reply With Quote
Old 11-05-2013, 06:33 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
Quote:
Originally Posted by teejayevans View Post
If you have employee insurance (COBRA counts), you are not eligible....given the problems with ACA, I would count my blessings, hopefully in 18 months when your COBRA runs out they'll have issues worked out.
COBRA is not counted as employer provided insurance in regards to eligibilty for the exchange. During open enrollment you can drop COBRA and switch to an exchange plan. COBRA does count as meeting the requirement to have insurance.
__________________
rbmrtn is offline   Reply With Quote
Old 11-05-2013, 06:34 PM   #9
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,853
Quote:
Originally Posted by teejayevans View Post
If you have employee insurance (COBRA counts), you are not eligible....given the problems with ACA, I would count my blessings, hopefully in 18 months when your COBRA runs out they'll have issues worked out.
I think this might need another look, actually.

It is my understanding that just because you may have access to cobra, that does not mean you are not eligible to get an ACA policy and, if you shop on the exchange, get your subsidy in advance.

The problem would be if you accepted cobra. Then you'd be stuck with it until the next open enrollment. But since open enrollment lasts through March, that offers a pretty flexible situation.

One option, if you became unemployed at a point other than during open enrollment, would be to immediately enroll through the exchange. You'd be covered with that policy within fourty five days, worst case. But you have sixty days to accept cobra. So if you sit on the cobra decision and don't need health care, you're golden. If something badcomes up, you opt into cobra and you'll have been continually covered.
__________________
sengsational is online now   Reply With Quote
Old 11-05-2013, 08:51 PM   #10
Recycles dryer sheets
 
Join Date: Feb 2012
Posts: 76
Quote:
Originally Posted by sengsational View Post
One option, if you became unemployed at a point other than during open enrollment, would be to immediately enroll through the exchange. You'd be covered with that policy within fourty five days, worst case. But you have sixty days to accept cobra. So if you sit on the cobra decision and don't need health care, you're golden. If something badcomes up, you opt into cobra and you'll have been continually covered.
That is an excellent point! Thanks for that advice. It might end up exactly fitting my situation.
__________________
Dwhit is offline   Reply With Quote
Old 11-06-2013, 08:24 AM   #11
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by rbmrtn View Post
COBRA is not counted as employer provided insurance in regards to eligibilty for the exchange.
Here's something about that straight from the horse's mouth, so to speak:

https://www.healthcare.gov/what-if-i...obra-coverage/

Quote:
If you have COBRA continuation health coverage, you can keep it or decide to buy a Marketplace insurance plan.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 11-06-2013, 11:20 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Feb 2011
Posts: 1,629
IIRC, leaving COBRA is a 1-way decision. If you take Exchange Plan you cannot opt back into COBRA (unless you re-qualify for COBRA by w#rking & leaving a new job ).
__________________
ERhoosier is offline   Reply With Quote
Old 11-06-2013, 11:52 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
Quote:
Originally Posted by ERhoosier View Post
IIRC, leaving COBRA is a 1-way decision. If you take Exchange Plan you cannot opt back into COBRA (unless you re-qualify for COBRA by w#rking & leaving a new job ).
That's correct. That is part of COBRA, if you don't opt to take it within the time frame allowed by HIPAA then you loose it. I recall it was 60 days to elect COBRA, use it or loose it.
__________________
rbmrtn is offline   Reply With Quote
Old 11-06-2013, 11:58 AM   #14
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by rbmrtn View Post
That's correct. That is part of COBRA, if you don't opt to take it within the time frame allowed by HIPAA then you loose it. I recall it was 60 days to elect COBRA, use it or loose it.
Except during a COBRA open enrollment period. My ex-Megacorp is having one of those right now. DW and I both need an eye exam and almost certainly new prescription lenses, so I'm going to opt to take that for $14 per month for the two of us.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 11-07-2013, 04:04 AM   #15
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,228
Quote:
Originally Posted by rbmrtn View Post
COBRA is not counted as employer provided insurance in regards to eligibilty for the exchange. During open enrollment you can drop COBRA and switch to an exchange plan. COBRA does count as meeting the requirement to have insurance.
IIRC, when originally taking the questionnaire they kicked you out if you said you had employee insurance including COBRA, but I didn't think of canceling it
__________________

__________________
teejayevans is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 04:29 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.