COBRA, squeezing by until 2019?

[cstang]

i have dropped from full time to part time employment, and so need to determine whether or not to take COBRA. My COBRA payment isn’t that bad, $530. However, from what I’ve seen on the marketplace, I can get by with a cheaper premium once 2019 begins because my income (due to my part time employment) will be much lower than it was in 2018, definitely low enough for a subsidy on the marketplace.

My current coverage runs until 9/30/2018.
I have until 11/29/2018 to elect COBRA.
I have another 45 days (1/13/2019) to make payment, although I’d have to pay for all 3 months’ premiums by then.
If I have no medical expenses during this time, doesn’t it make sense to wait until 11/29/2018 to send in the COBRA election, then just not pay it, because starting 1/1/2019 I’d have lower cost coverage from the marketplace?

Am I missing something? Too risky? I have no medical conditions and take no meds.

One additional wrinkle. I’ll be out of the country (Spain) from 9/27/18-11/16/18. My insurance will cover emergency medical care (I think it’s 80/20) but I would have to pay everything out of pocket and file a claim when I get back. I’ll still be back in time to mail the COBRA election paperwork by 11/29. Obviously I wouldn’t wait until the very last day, they use whatever the postmark date is.

 

[MBSC]

That is exactly how to use the process in your favor. Below is an older post on this subject. When you apply for the 2019 marketplace plan you may be asked to upload a document explaining the income decrease. Marketplace plans generally have smaller provider networks than group/COBRA plans so be sure your local hospital(s) are included.

The individual mandate is still in place for 2018. The short-gap exemption from the mandate penalty is for coverage gaps of less than 3 months so there will be a small, pro-rated penalty if you do not qualify for another type of exemption.

Electing COBRA is a 105 day process broken into two parts. First, you will have 60 days to decide if you want to return the election form to accept COBRA. Return the form on day 55. The postmark date is used when mailed and some let you submit by internet/phone.

Then, you get 45 days from the date you returned the form to decide if you want to pay the first premium and be covered retroactively to 2/1/19. Don't make the first payment by day 100 (55+45) if nothing major happens. Pay cash to a 'doc in a box' for something minor.

Circling back to the election form. Consider completing it, placing it an envelope, and leaving it with a trusted relative with instructions to mail in case you and DW are incapacitated in a car accident on day 50 and unable to mail it before day 60. Otherwise, retrieve the form on day 55 and submit it yourself.

Q14: How do I elect COBRA?

Qualified beneficiaries must be given an election period of at least 60 days during which each qualified beneficiary may choose whether to elect COBRA coverage. This period is measured from the later of the date of the qualifying event or the date the COBRA election notice is provided. COBRA coverage is retroactive if elected and paid for by the qualified beneficiary.

Q16: How long do I have before I have to submit my first COBRA payment?

A group health plan cannot require payment for any period of COBRA continuation coverage earlier than 45 days after the day on which the qualified beneficiary made the initial election for continuation coverage.

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