Has anyone started searching for insurance after the notification period ends? If so, any success you can share is appreciated.
5 replies (most recent on top)
My research indicates that it may be better to enrol in Obamacare and bank the COBRA lump sum that is paid to you. ACA open enrollment is open until Jan 15 and losing job based health insurance is a qualifying event after that date. The reason to do so would be that CoBRA lump sum paid out is taxed. “COBRA subsidies are taxable if the employer provides funds directly to individuals without requiring substantiation. This is because an employee may or may not use the funds to pay for COBRA premiums, and therefore, the funds are treated as wages subject to applicable taxes.” ACA premiums are tax deductible based on total income. Plus COBRA coverage adds a 2% admin charge to the premium.
I just got off the phone with HR. We are covered by Schwab until January 31st, 2024. Mid-January we’ll be sent the Cobra paperwork to review and decide whether you want to continue on Schwab’s healthcare plans or not.
I’m getting $3,289 to used for Cobra premiums
Obamacare is currently accepting new patients.
Don't they pay you the price of Cobra for the length of your severance?
(made up numbers just for this example)
In my case, I get roughly 90 days (3 months) of severance at $100/day.
Total Severance $9,000 (before taxes)
Then they pay me lump sum of the price of my insurance (Medical, Dental, Vision, etc) premiumms for that same period. Let's say my premimums were $1,000/month.
Total Cobra paid $3,000 (this should be pre-tax)
Total payout on Jan 5th - $12,000 - and that's if I sign up for Cobra or not.
Start with https://www.healthcare.gov/ and separately search for independent brokers. You’ll be best served by one who focuses on health and other services. We did much better on the car and house than Schwab’s partnership.