Sheepdip

So I'm in a new job and of course the new healthcare doesn't kick in until 90 days. So I've searched back through the old threads and it looks like I can elect the COBRA option from my old employer (that covers myself and spouse) but not actually pay anything unless I need the cover and then it kicks in back to the day I lost cover from the old employer? Is that correct? Don't want to be caught out without cover in this 90 day period.

Giantaxe

Almost. The limit is 60 days on activating COBRA from your previous job's termination date. I have done what you are suggesting several times and in the end never needed to activate my COBRA coverage. In your case you are going to have a problematic 30 day window.

Sheepdip

But if I elect coverage within the 60 day window and just don't pay the invoice, wouldn't that be the same? The documents say "You are not required to make a payment with your COBRA election, but coverage may not be reinstated until a timely payment is made".

scrubbedexpat099

OCare fine issue?

kins

When I was late paying an invoice for my COBRA dental insurance they cancelled it incredibly quickly and there was no way to re-instate it. It's not a risk I'd take in your position.

sir_eccles

A couple of months is likely to be covered under the short gap exemption. Also Cobra coverage is sufficient to avoid the fine.

https://www.healthcare.gov/exemption...ails/short-gap

kodokan

90 days would be too long, though, as the exemption is only 2 months. And you can't do (non-paying) COBRA for the first 60 days and then an ACA policy for the next 30, as letting the COBRA lapse* would count as voluntarily leaving coverage, and exclude you from the Healthcare marketplace until the next open enrollment.

(Arguably you'd have never had it at all - I can't recall how the question is worded on the tax return, but have vague memories of 'did you have continuous healthcare coverage throughout 201x', which would probably have to answered as 'no' because you don't have coverage under an insurance if you don't pay the premiums.)

90 days as a window is really unfair and problematic! There's probably no simpler solution than 3 months of ACA coverage at whatever the cheapest rate is, and finger crossing.

sir_eccles

Depends when he changed jobs. Also it is December so the new tax year starts soon. Half the time in 2015 and half in 2016, he'll be fine.

Sheepdip

My 'loss of coverage' was 10/31

Giantaxe

I agree. In fact, pre-ACA some companies had longer waiting periods than that. The ACA puts a limit of 90 days on it.

Giantaxe

According to this, that straddled time will get pushed into accounting for the subsequent tax year:

ACA Treatment of Coverage Gaps | Obamacare Fine Calculator

kodokan

Well, that's neat and easy. Use the 'sign up if you need it' COBRA for Nov and Dec; meanwhile, take out a 2016 ACA policy during the current open enrollment to start in Jan 2016. Cancel this after the first month when your work cover kicks in for 1 Feb (if that's the 90 days..? Otherwise keep it for Feb too).

Note that the Marketplace requires a minimum 14 day notice to cancel a policy; they can't just do it on the spot. I don't know if any refund would be due for part-months, as I cancelled mine to finish 14 days later on something like the 28th August, and couldn't be bothered to try and find out if I was due a rebate for those few days.