COBRA and Open Enrollment

[Murph]

FIRE'd in Ohio this year. Opted to use the 18 months of COBRA until mid-2020, then roll the dice with the Marketplace.

Question: Does anyone know if I will have to do anything during the "open enrollment" window (usually in Sept/Oct) as I did when I was working? I've not heard anything from the insurance company about it.....

 

[mitchjav]

FIRE'd in Ohio this year. Opted to use the 18 months of COBRA until mid-2020, then roll the dice with the Marketplace.

Question: Does anyone know if I will have to do anything during the "open enrollment" window (usually in Sept/Oct) as I did when I was working? I've not heard anything from the insurance company about it.....

In the same boat as you. FIRE'd last year and opted for COBRA. Not sure on the open enrollment question (I believe you do) - but that should be more like October/November. One caution - if you switch plans mid-year, believe you'll need to pay deductibles all over again with the new plan.

 

[Aerides]

You don't have to take any action now. Just remember you can't "ditch" cobra mid way outside of the enrollment period. For example, if it runs through September 2020, you can't decide in April 2020 that you want to give it up and go ACA. However, you can always dump it during open enrollment. That's what I did, but I was only dropping the last 2 months.

You can, however, enroll in the ACA outside the enrollment period if your Cobra ends outside. So, let's say your cobra ends on July 17, 2020, you are eligible to enroll in the ACA as an Event, just like if someone lost any job insurance, or if you had never gone on cobra to begin with.

And yes as noted, if you are on cobra for part of next year, then go onto an ACA plan for the other part, any contributions toward deductibles in your cobra plan will mean zero towards your aca plan, even if you stay with the same insurer.

ACA plan starts enrollment in November I think, you would be wise still to shop and have a look.

ETA: with my MC, when I was on cobra, I still had to do the regular insurance annual enrollments as if I was still employed. I got the same packet and choices, etc. So there is that, but not the ACA marketplace stuff, to do.

 

[Spock]

You don't have to take any action now. Just remember you can't "ditch" cobra mid way outside of the enrollment period. For example, if it runs through September 2020, you can't decide in April 2020 that you want to give it up and go ACA. However, you can always dump it during open enrollment. That's what I did, but I was only dropping the last 2 months.

You can, however, enroll in the ACA outside the enrollment period if your Cobra ends outside. So, let's say your cobra ends on July 17, 2020, you are eligible to enroll in the ACA as an Event, just like if someone lost any job insurance, or if you had never gone on cobra to begin with.

And yes as noted, if you are on cobra for part of next year, then go onto an ACA plan for the other part, any contributions toward deductibles in your cobra plan will mean zero towards your aca plan, even if you stay with the same insurer.

ACA plan starts enrollment in November I think, you would be wise still to shop and have a look.

ETA: with my MC, when I was on cobra, I still had to do the regular insurance annual enrollments as if I was still employed. I got the same packet and choices, etc. So there is that, but not the ACA marketplace stuff, to do.

You can also move off COBRA to ACA if there is a step function in COBRA such as the first 12months at the lower employee rate and the last 6 months at a higher rate employer cost+2% admin.

 

[Murph]

You don't have to take any action now. Just remember you can't "ditch" cobra mid way outside of the enrollment period. For example, if it runs through September 2020, you can't decide in April 2020 that you want to give it up and go ACA. However, you can always dump it during open enrollment.

Is that right? I was told that COBRA benefits last to a maximum of 18 months, or until I got another plan. For example, if I was changing jobs, I would only have to carry COBRA until my new insurance kicked in. Are you saying I am on the hook for the whole 18 months regardless of what I do?

 

[bingybear]

When I did pretty much what you are doing I kept cobra for the full 18 months. My cobra allowed you to pick different plans under your employer's plans. This was done by the service company for the cobra. If you don't switch to the ACA during open enrollment, then you will need to do the filing done for a special enrollment period... not all that complicated to do.

 

[Aerides]

Is that right? I was told that COBRA benefits last to a maximum of 18 months, or until I got another plan. For example, if I was changing jobs, I would only have to carry COBRA until my new insurance kicked in. Are you saying I am on the hook for the whole 18 months regardless of what I do?

No. if you get another job you of course go to the new insurance. You're only on the hook vs. ACA enrollment. Yu cannot opt in to ACA/Marketplace insurance while cobra is active (unless as noted above there is a significant change in yours like a price change - which creates an eligible event.) You cannot just go "eh...tired of cobra, feel like going on ACA" in the middle of the year. that is not a qualifying event.

 

[erkevin]

Listen to this insanity: wife and I are on her COBRA. Employer's fiscal year is July 1 to June 30. She became sick in the spring of this year (cancer). Met the deductible for that fiscal year. New deductible beginning July 1. Her 18 months of COBRA runs out November 30. Have to switch to ACA or our state's retirement plan for December (another deductible). Then enroll again January 1 (another deductible).
To summarize: 6 months on one deductible, 5 months on another deductible, one month on another deductible, then January 1st and a whole new deductible..............

 

[Murph]

No. if you get another job you of course go to the new insurance. You're only on the hook vs. ACA enrollment. Yu cannot opt in to ACA/Marketplace insurance while cobra is active (unless as noted above there is a significant change in yours like a price change - which creates an eligible event.) You cannot just go "eh...tired of cobra, feel like going on ACA" in the middle of the year. that is not a qualifying event.

I see. That makes sense. Thanks for clarifying!