Losing employer insurance in April. Cobra or alternatives?

[cathy63]

... i need to add my work income to that of my dividend income. Now, is this work income figure the amount AFTER taxes (deductions et.al) or BEFORE deductions? Thanks! Mike

It's the amount before deductions. Specifically, from your 1040 add line 11 + line 2a + untaxed SS benefits from lines 6a/b. If you have foreign earned income on form 2555, that gets added back too.

 

[cathy63]

...and presumably would get some discount/contracted rate for such providers and certain wellness/preventative procedures like Colonoscopy - which i think even some ACA high-deductible providers might allow at a significantly reduced rate...

Here's the list of what's covered by all ACA plans. You can click on the "preventive" link to see what's included. https://www.healthcare.gov/coverage/what-marketplace-plans-cover/

 

[mikes425]

It's the amount before deductions. Specifically, from your 1040 add line 11 + line 2a + untaxed SS benefits from lines 6a/b. If you have foreign earned income on form 2555, that gets added back too.

Thanks for clarifying that...i have some calculating to do: ) - Also thanks for the ACA required coverage list. I am due for a colonoscopy in 2022 - which i thought i might have to schedule before the union/employer insurance expired - however it looks like the ACA requires any plan to cover that at no charge to the patient. Found the attached when i searched that question.

 

[PaunchyPirate]

Thanks for clarifying that...i have some calculating to do: ) - Also thanks for the ACA required coverage list. I am due for a colonoscopy in 2022 - which i thought i might have to schedule before the union/employer insurance expired - however it looks like the ACA requires any plan to cover that at no charge to the patient. Found the attached when i searched that question.

There have been reports that some people have to pay if their colonoscopy is not deemed preventative. If you had a previous colonoscopy that revealed polyps, then the next colonoscopy is actually considered diagnostic and not preventive. However, my ACA plan fully covered mine a year ago even though my previous one 5 years prior found polyps. So it seems hit or miss on that subject.

 

[ERObjd]

The problem with Cobra is that it is way too high.. if income is low enough Obama care is better and cheaper than Cobra. I could not afford cobra, it probably does not work for most people it is simply too high.

 

[cathy63]

The problem with Cobra is that it is way too high.. if income is low enough Obama care is better and cheaper than Cobra. I could not afford cobra, it probably does not work for most people it is simply too high.

COBRA costs are different for different people. It's just the full price premium of the employer insurance plus up to 2% administrative fee. If yours was too expensive, that's because your former employer had an expensive plan and was kicking in a whole lot of the premium cost when you worked there.

In most states age rating is allowed on the exchanges, so ACA plans are cheaper for young people and more expensive for older people; while employer group plans charge the same premium for everyone. If you're over 60, then COBRA might very well be cheaper than ACA, while for someone in their 20s, it's the other way around.

 

[orchid55]

Cathy63 is correct about COBRA costs. When my husband was laid off at age 60, COBRA was $1200 a month and the cheapest ACA plan was $1400 a month. The COBRA coverage was nationwide and had a much lower deductible than the ACA plan. Another thing to consider is that the ACA premiums are based on your income for the entire year, not just the income for the months when you need ACA coverage.

 

[GoodLife59]

I think you should do a little more homework. I’m fully retired and will be 62 in a couple months. My state has its own health exchange. I figured out the income requirements to get a subsidized plan. By using proceeds from my Roth portfolio I got my qualified income low enough that we have a great plan for $20/month. Would be $1500 otherwise.

 

[LakeRat1]

Christian Healthcare Ministries is what I have been doing for the past 5 years, still have 5.5 years to go --- https://www.chministries.org/

 

[maestro]

+1 on the ACA subsidy cap being eliminated for 21-22. Check out https://www.healthinsurance.org/obamacare/beware-obamacares-subsidy-cliff

I went on ACA back in 2018 (now on Medicare), and came very close to ACA cap, but then DB told me about the 4500 HSA deduction. I owe him a beer for that tip, which got me below the threshold. But, I agree there are definitely better options than COBRA. Good luck, stay well.

 

[meleana]

I dropped Cobra after two months and went on a fully subsidized ACA plan for 17 months until I was eligible for Medicare. (Hubby was already on Medicare then. )

How? We were living and are continuing to live on cash until age 70 when we will start to take SS, and so have a minimal income.

(I am 65 and he is 67 right now.)

 

[COcheesehead]

My Cobra silver level plan was $1900. My gold ACA is $828. Premium credits are available for almost everyone. Easy decision. Be careful with the ministry plans. I know at least one person who had a gotcha with those.

 

[Escapevelocity]

When you turn 65 and go onto Medicare you should probably go with original Medicare as opposed to Medicare Advantage because you will have nationwide coverage and won’t have to worry about getting sick on the road when you’re performing and the geography thing in your city/state won’t be a problem.