Going off COBRA on to ObamaCare

[LXEX55]

When I am 63, I hope to retire. Since my wife is a two time cancer survivor, I obviosuly need good healthcare. I plan on signing on the COBRA plan with my job here in NYC and then relocating to Florida. I would then like to sign up for ObamaCare. I know there is a sign up period where you can sign up. My question is, can I just go off the COBRA plan anytime I want and sign up for Obamacare in Florida or do I have to wati until the sign up period? Are there exceptions made depending on the situation?

 

[jjflyman]

I am looking into something similar, and my understanding is that you can sign up for the ACA insurance anytime if you have a change of status (losing current health insurance)
So, yeah, you can sign up when you quit your COBRA

 

[Fleur58]

In my case, COBRA was less expensive than Obamacare. I had a "gold type" plan with no deductables and paid $640 a month to continue with COBRA. Obamacare would have been considerably more, with just a Bronze plan a little more expensive than my gold COBRA plan. I happily paid COBRA for 1 year, and also received 6 months with no premium required from my former employer.
Now for the first time I started Obamacare Jan 1 at $640 for a single unsubsidized Bronze plan. I actually like my healthcare provider, Kaiser Permanente, even though the plan covers very little. But the radiology, pharmacy, lab, and doctor is in one "Medical Center" and the staff is super friendly.

 

[MBSC]

I am looking into something similar, and my understanding is that you can sign up for the ACA insurance anytime if you have a change of status (losing current health insurance)
So, yeah, you can sign up when you quit your COBRA

Voluntarily terminating COBRA early does not create a Special Enrollment Period (SEP) to enroll in an ACA exchange plan.

"If you’re ending COBRA early - Outside Open Enrollment

You can’t change until the next Open Enrollment Period, your COBRA runs out, or you qualify for a Special Enrollment Period another way" (the OP is moving).

Reference: https://www.healthcare.gov/unemployed/cobra-coverage/

My question is, can I just go off the COBRA plan anytime I want and sign up for Obamacare in Florida or do I have to wait until the sign up period? Are there exceptions made depending on the situation?

You have your choice of 3 ACA exchange enrollment periods to choose from.

1) After you move to FL you will have a limited-time relocation SEP (Special Enrollment Period) to enroll in an exchange plan. You will need to upload a utility bill PDF or another document to the exchange with the new address.

Documents to confirm move: https://www.healthcare.gov/help/prove-move/

2) You will have a "loss of coverage" SEP when COBRA expires. Just make sure the COBRA plan's provider network includes FL providers if you choose to wait until COBRA expires.

3) Since COBRA will expire after 1/1/19, you can opt to end COBRA on 12/31/18 and enroll in an exchange plan on 1/1/19 using the annual open enrollment period. Again, be sure the COBRA plan's provider network includes FL.

Deductibles and OOP carry over from group to COBRA but reset to $0 met if you change from COBRA to exchange plan mid-year.

 

[bingybear]

I am looking into something similar, and my understanding is that you can sign up for the ACA insurance anytime if you have a change of status (losing current health insurance)
So, yeah, you can sign up when you quit your COBRA

Absolutely NOT!

you can sign up when you have a qualifying life change. Terminating cobra is not one of these. If you run out of cobra eligibility, that qualifies. If you are in open enrollment period, then you can quit cobra and get an ACA plan. But voluntarily cancelling insurance does not create a special enrollment period.


Be very careful with information from SGOTI... even me.

 

[sengsational]

One thing that I understand to be true is that just being eligible for COBRA does not prevent one from getting an Obamacare policy.

 

[bingybear]

One thing that I understand to be true is that just being eligible for COBRA does not prevent one from getting an Obamacare policy.

I agree.

 

[LXEX55]

So in other words, I would stay on COBRA while in Florida until the first open enrollment period for Obamcare. Then I could switch over, correct?

 

[joeea]

So in other words, I would stay on COBRA while in Florida until the first open enrollment period for Obamcare. Then I could switch over, correct?

Yes.

Either go directly onto an ACA plan, or go on COBRA until the first open enrollment period then enroll in an ACA plan.

That's what we did. I went onto COBRA for the 6 months after I retired. That kept me on my high-deductible company plan - at the cost of 102% of the full plan costs (both my portion and the company portion plus administrative costs).

At the end of the year, during the ACA open enrollment period, we enrolled in a Silver plan. We ended up paying far, far less on the ACA plan. It was subsidized due to going from our combined income to just my wife's income.

In fact, we now have a better plan, with a much smaller deductible for less that what I used to pay for just the employee portion of my company's plan. All of our doctors and prescriptions remain covered. If you can stay below the subsidy limits, it's a good deal.

 

[Spock]

As stated earlier, you can not quit COBRA any time you want to start ACA. I was on 18 months of COBRA, 12 months subsidized, 6 months full rate/unsubsidized. You can transition off COBRA onto ACA when the price changes.

If you go on ACA prematurely, you will have to pay back your ACA subsidy when you file that years taxes (capped at $600).

 

[jjflyman]

Voluntarily terminating COBRA early does not create a Special Enrollment Period (SEP) to enroll in an ACA exchange plan.

"If you’re ending COBRA early - Outside Open Enrollment

You can’t change until the next Open Enrollment Period, your COBRA runs out, or you qualify for a Special Enrollment Period another way" (the OP is moving).

Reference: https://www.healthcare.gov/unemployed/cobra-coverage/

You have your choice of 3 ACA exchange enrollment periods to choose from.

1) After you move to FL you will have a limited-time relocation SEP (Special Enrollment Period) to enroll in an exchange plan. You will need to upload a utility bill PDF or another document to the exchange with the new address.

Documents to confirm move: https://www.healthcare.gov/help/prove-move/

2) You will have a "loss of coverage" SEP when COBRA expires. Just make sure the COBRA plan's provider network includes FL providers if you choose to wait until COBRA expires.

3) Since COBRA will expire after 1/1/19, you can opt to end COBRA on 12/31/18 and enroll in an exchange plan on 1/1/19 using the annual open enrollment period. Again, be sure the COBRA plan's provider network includes FL.

Deductibles and OOP carry over from group to COBRA but reset to $0 met if you change from COBRA to exchange plan mid-year.

Thanks for the clarification!
Great info

 

[jjflyman]

OK, It is clear that once a person goes on COBRA, you must wait until open enrollment, but, can someone skip the Cobra, and go on ACA insurance immediately after retiring?
In other words, if someone retires in May, can they get a plan thru the exchange right away, or must they take COBRA until the next open enrollment time?
I don't understand how somebody can voluntarily quit a job and be eligible, but not quit COBRA and be eligible.

 

[sengsational]

There are many who didn't cancel COBRA, but didn't pay either. I think the law allows 45 or 60 days. Concurrently you get into an ACA plan. That way, if something bad happened, you'd quickly pay for COBRA and be covered. But the expected situation would be to not utilize any COBRA for the time it takes for the ACA policy to kick in.

 

[joeea]

OK, It is clear that once a person goes on COBRA, you must wait until open enrollment, but, can someone skip the Cobra, and go on ACA insurance immediately after retiring?

Yes. Retiring is a qualifying event.

You can go immediately into an ACA plan without ever using COBRA.

I don't understand how somebody can voluntarily quit a job and be eligible, but not quit COBRA and be eligible.

Thems the rules. Understanding is optional.

 

[pb4uski]

Moving in certain circumstances is a qualifying event.

https://www.healthcare.gov/blog/moving-special-enrollment-period/

 

[jonat]

My COBRA (fully paid for by Megacorp) runs through this coming June. I plan to enroll in an ACA plan that starts July - as others have noted, if COBRA ends through no action of your own, that qualifies.

 

[Oma_here]

LXEX55 you mention that you are 63, but how old is your wife the two-time cancer survivor ( congrats for that)? If she is younger than you, how certain are you that the ACA wiil be available past next year? This is not meant as a political statement although politics plays a role in it: the pre-existing condition rule may be out the window in some states. Research the status of the ACA in the state you intend to move to before moving anywhere.

 

[Aerides]

If you retire and forgo corba = you can ACA

If you go on COBRA but then later exit COBRA during annual enrollment, or let COBRA expire at the year or the 18 months = you can ACA

You can't just swap like, eh, I feel like it, say on March 25th. You need to not have other coverage available during the period that you are asking for ACA. So, the "anytime" in your original post is the questionable part. I mean I guess you could, but you'd have to have a clean exit and reentry, and that's trickier for someone who can't afford any lapses as in your situation.

Let's say you retire on Jul1 this year, you can then COBRA for the back half of 2018, and all of 2019, and then enroll in ACA for 2020 coverage with normal enrollment. Or if you retire on April 1, you can cobra till Sept 30 of 2019, and then enroll in ACA on Oct1 2019 with a "qualifying event" - ie, loss of other coverage.

For my example, I'm in COBRA now, and technically i can keep it until EOM Feb 2019. Rather than bother with a hop 2 months into a year, I will enroll in the ACA later this year during open enrollment for full-year 2019 coverage,and forgo my last two months of eligibility in cobra by not re-upping in that plan.

 

[Splash]

DH and I signed up for ACA health insurance coverage about 6 weeks before we retired and had it become effective when our employee coverage ended. I tried to do the healthcare.gov application process on my own but found the on-line questions confusing related to cobra and whether or not we were qualified for ACA insurance and when. I was afraid I would screw something up so, I contacted an insurance broker who helped us with the application process. There was no charge for us to use the broker as he was paid a fee by whatever insurance company we picked.

While we chose ACA for health insurance coverage, we chose to take cobra for dental and vision. Our plan is to self insure those when cobra ends.

 

[bingybear]

DH and I signed up for ACA health insurance coverage about 6 weeks before we retired and had it become effective when our employee coverage ended.

note the above. When you want to get ACA coverage, you typically have to have all the applying and paperwork done correctly (take this as approved) by the 15th of the month prior to the insurance starting. I believe you need to have the first month paid for before the insurance takes affect. Take this as do everything early

 

[streamjp]

Somewhat related question - I on Cobra since 1/1/18, my previous employer covered premiums the first 6 months through 6/30 and I am would have to cover Cobra premiums from that point on. I have since found new employment, I declined their medical coverage since I am currently covered with paid Cobra.

Will I be able to stop Cobra on 6/30 and enroll in an employer plan at that time?

 

[GTFan]

That's something you'd have to ask your HR dept. about. I think the answer you'll get is that you'll have to wait until open enrollment in the fall since you already declined coverage.

 

[GTFan]

There are many who didn't cancel COBRA, but didn't pay either. I think the law allows 45 or 60 days. Concurrently you get into an ACA plan. That way, if something bad happened, you'd quickly pay for COBRA and be covered. But the expected situation would be to not utilize any COBRA for the time it takes for the ACA policy to kick in.

Yup, that's what I did to get a couple 'free' months when I retired at end of 2014, then I started an ACA plan on March 1. But I also had a signed COBRA election letter in my wife's hands that she could mail if anything happened to me in that time. You have 60 days to accept/decline COBRA after end of employment and then another 45 to pay the first premium, so theoretically you can get 3 months for 'free' (you elect coverage but then don't pay, IIRC there's no penalty for that). Coverage is retroactive to the day you left work if you elect during the 60 day period.

https://www.cms.gov/CCIIO/Programs-and-Initiatives/Other-Insurance-Protections/cobra_qna.html

At that time you could only go a couple of months without coverage to avoid the mandate penalty, but that's not an issue now. Saved me about $1500 in premiums.

 

[Cayman]

LXEX55 you mention that you are 63, but how old is your wife the two-time cancer survivor ( congrats for that)? If she is younger than you, how certain are you that the ACA wiil be available past next year? This is not meant as a political statement although politics plays a role in it: the pre-existing condition rule may be out the window in some states. Research the status of the ACA in the state you intend to move to before moving anywhere.

We're planning on shifting sands when it comes to health insurance. I don't see any political statement/judgement in your message, you're calling it what it is. Be informed, plan based on what you know today and have your checkbook ready.

 

[24601NoMore]

Wow - timely thread. DW and I are both thinking of RE this summer, and using COBRA to get us through the end of 2019 (basically the full 18 months that I believe COBRA supports). That way, I don't have to worry about the ACA subsidy cliff in terms of AGI for 2019 and can put all my company stock cap gains into that tax year without falling off the ACA cliff at 4X FPL + $.01.

Weird that I didn't think of this strategy earlier on as I will probably have some pretty decent cap gains from company RSUs and was wondering when in the heck I was going to recognize them - didn't want to do it this year as our AGI will already be too high and are gonna get hit with the extra ACA "investment" tax as it is already..if I can go into a year like 2019 and stay < roughly $101K AGI, will have ZERO LT cap gains (saving me 15%) and zero "investment" tax on Fed - for a total savings of 18.8%.

Thank you, COBRA!