ACA sign-up near end of COBRA

[joesxm3]

I just spent two hours and finally seemed to get my ACA account created.

It asked if I was currently covered by an employer plan and since I am currently on COBRA and eligible for COBRA through the end of January 2018, I said yes and it told me I could not have any subsidies.

I called up the customer service and the representative changed my answer to no and told me that it did not mean COBRA.

She said that it would be fine for me to use COBRA up to 12/31/2017 and then start ACA on 1/1/2018.

After we hung up I started to worry if my being eligible for one last month of COBRA would make a problem and if I should actually be using COBRA for January and then enrolling as a special case due to COBRA expiring.

Do you think being eligible for COBRA that last month is going to make me not eligible for subsidies either for January or for the entire year?

I used to think I was a relatively intelligent computer literate person, but this morning on the web site has made me wonder how anyone can get through this.

It also sent me a mailbox item saying that I needed income verification. I picked the document type "statement of projected earnings" and explained that I was now retired and had only investment income and IRA withdrawal income and planned to manage the IRA to make adjusted gross income be $40,000. Think that will satisfy them?

Thanks.

Joe

 

[rbmrtn]

You can change from COBRA during open enrollment. You can not decide to drop COBRA outside of open enrollment and change to an exchange plan. You're fine during open enrollment.

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

Statement of being retired should be fine, others have done so.

 

[joesxm3]

I continued to Google after posting this and found this FAQ.

Does item 17 confirm that I am OK to stop using COBRA as of 12-31-2017 with one month of eligibility remaining and still get my tax credit? Seems so to me.

"17. Can I get the premium tax credit subsidy for coverage through a Marketplace if I am eligible for coverage through my former employer, such as COBRA or retiree coverage?

If your is coverage is from a former employer, such as COBRA or retiree coverage, you can decline the employer coverage, even if it is affordable and provides minimum value, and may be eligible for the premium tax credit for Marketplace coverage."

https://www.irs.gov/affordable-care...estions-and-answers-on-the-premium-tax-credit


[edit to add]
thanks rbmrtn. I wrote this while you were posting and did not see your reply.

 

[bingybear]

You can change from COBRA during open enrollment. You can not decide to drop COBRA outside of open enrollment and change to an exchange plan. You're fine during open enrollment.

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

Statement of being retired should be fine, others have done so.

above is correct, but not complete. Your eligibility for cobra ending (running out) creates a special enrollment.

Don't have cobra and the aca plan active during the same month. That could cause issues.

 

[joesxm3]

above is correct, but not complete. Your eligibility for cobra ending (running out) creates a special enrollment.

Don't have cobra and the aca plan active during the same month. That could cause issues.

But I should be OK if I call COBRA and tell them I want to cancel my coverage as of 12/31/2017 and not purchase my last eligible month of Jan 2018 because I am switching to ACA, right?

I figure I may as well put the entire year on ACA so as not to waste any deductible I might have to pay in January.

 

[bingybear]

But I should be OK if I call COBRA and tell them I want to cancel my coverage as of 12/31/2017 and not purchase my last eligible month of Jan 2018 because I am switching to ACA, right?

I figure I may as well put the entire year on ACA so as not to waste any deductible I might have to pay in January.

Yes. You can cancel cobra anytime you want. Your cancelling of cobra does not make for a special enrollment period, but you are signing up during open enrollment. Note that means you have to have all the ACA stuff completed by December 15th for open enrollment.

 

[VanWinkle]

My wife is in the exact same situation. I have the ability to keep the cobra to end of January, but why be subjected to 2 different deductibles and OOP max from the cobra and the ACA plan. We will do the ACA for 01-01-2018 to stick with one deductible. The subsidies are there either way.

VW

 

[joesxm3]

Thanks for the help.

Ironically, I got a notice in the mail today that I have a week or so to decide what my COBRA will be like in 2018. I will have to contact them to see how I go about cancelling it for January.

 

[Bir48die]

My Cobra just ran out. Had to go on Health.gov site to register and independently got Kaiser. Cobra $540/mth, Kaiser $679/mth.

Then started getting emails from Health.gov that I needed to pick a plan, etc. Realized that even though I just did that I wasn't rolled over for 2018 year so called and they walked me through everything. At the end she asked me "did you find out your new rate for 2018?" I said no. They proceed to tell me it's now $850/mth.

After the initial shock she asks me "do you want me to look up other Silver plans?" I of course say yes and find out I have the lowest cost for the plan. Just upped my withdrawal rate to cover.

 

[pb4uski]

Would a bronze level plan work for you?