dropping COBRA

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DoWahDaddy
Posts: 299
Joined: Sat Jul 02, 2011 9:32 am

dropping COBRA

Post by DoWahDaddy » Tue Sep 23, 2014 8:46 am

Greetings all. I've had COBRA as a bridge between employers. I start the new employer's health plan on Oct 1st. The COBRA Sept payment is not due until Oct 7th. Does this mean if I don't need any health services throughout Sept that I can just not make the Sept payment by Oct 7th and COBRA is effectively dropped? Would this one-month lapse in coverage cause any issues with my new health insurance after it kicks in Oct 1st? Thanks!!!
"Stay the course." - J. Kirk

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laughlinlvr
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Joined: Wed Nov 18, 2009 3:34 pm
Location: ID, NV

Re: dropping COBRA

Post by laughlinlvr » Tue Sep 23, 2014 8:51 am

I'm not an expert on these things, but I would advise caution. Here's what would concern me: should you lapse your health care coverage then you commence your new coverage with the need to reset the pre-existing exclusion period.
Investing - The hardest way to make an easy living.

adamthesmythe
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Joined: Mon Sep 22, 2014 4:47 pm

Re: dropping COBRA

Post by adamthesmythe » Tue Sep 23, 2014 8:54 am

You would have to read carefully the provisions of your new health care plan. I seem to recall plans where pre-existing conditions are not covered for a period of time after beginning coverage.

In the U S of A, health care coverage is not something to take risks with, especially if you have any assets.

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dodecahedron
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Re: dropping COBRA

Post by dodecahedron » Tue Sep 23, 2014 8:55 am

You also need to consider whether an ACA tax penalty might apply on your 2014 tax return if you do not have any qualifying insurance coverage for September 2014.

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TIAX
Posts: 1279
Joined: Sat Jan 11, 2014 12:19 pm

Re: dropping COBRA

Post by TIAX » Tue Sep 23, 2014 8:58 am

adamthesmythe wrote:You would have to read carefully the provisions of your new health care plan. I seem to recall plans where pre-existing conditions are not covered for a period of time after beginning coverage.

In the U S of A, health care coverage is not something to take risks with, especially if you have any assets.
Denial of coverage based on preexisting conditions is not allowed under Obamacare. https://www.healthcare.gov/how-does-the ... conditions
Last edited by TIAX on Tue Sep 23, 2014 9:03 am, edited 1 time in total.

TIAX
Posts: 1279
Joined: Sat Jan 11, 2014 12:19 pm

Re: dropping COBRA

Post by TIAX » Tue Sep 23, 2014 9:03 am

dodecahedron wrote:You also need to consider whether an ACA tax penalty might apply on your 2014 tax return if you do not have any qualifying insurance coverage for September 2014.

http://kaiserfamilyfoundation.files.wor ... hart_3.png
Individuals are treated as having minimum essential coverage for a calendar month if they have coverage for at least one day during that month. Additionally, as long as the gap in coverage is less than three months, you may qualify for an exemption and not owe a payment. See question 22 for more information on the exemption for a short coverage gap.
http://www.irs.gov/uac/Questions-and-An ... -Provision

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