The loss of your job or make a career transition is stressful - and can hit you for a loop like a punch to the solar plexus. Then there is the added pressure of securing health insurance until you land a new job, or kicking the cover of a new employer.
In the past, many people avoid a gap in coverage for health care under COBRA, the law that keeps you on the group health care from your former employer, usually for 18 months, provided that you pay the premiums
with the affordable care Act (ACA) in place, however, a market plan can provide better -. and cheaper -. the
With the annual open enrollment period from November 15, 2014, to February 15, 2015 -. it is a good time to weigh your health insurance options, especially if you are currently covered by COBRA
Here are three reasons why you might want to exchange your COBRA policy for a market plan ACA.
1. Your monthly premiums may be lower
COBRA coverage can be expensive, and it is because you are responsible for the total premium.
This means that the part you pay as an employee and your employer contributed (usually about 70% of the cost) and an administration fee of 2%.
If you are currently covered under COBRA, the open enrollment period will give you the opportunity to spend your former employer the plan to a market option, which can offer greater flexibility regarding the coverage and premiums.
In addition to a choice of providers, there is also coverage levels, organized as platinum metal levels, gold, silver and bronze.
The platinum and gold levels have higher premiums but cover about 0 and 80%, respectively, health care costs, while the silver and bronze Plans have monthly premiums lower but higher deductibles and copays.
Keep in mind that moving to a different system could mean having to choose a different network provider and approved services.
If you receive continuous treatment, for example, and want to continue with your medical team, check to see if these doctors are covered by an ACA scheme you are considering.
2. You may be eligible for tax subsidies
A health plan market "could be much cheaper, especially with the tax credits," says Ivan Williams, Analyst principal policy GetInsured.
About 26 million Americans are eligible for government tax credits to help pay for Medicare premiums, while tax subsidies are not available under COBRA.
"You will be able to file the COBRA coverage during open enrollment and sign up for the coverage of the market with tax credits, if you qualify for them," Williams said.
qualification of government bases for tax credits on household income and how many people are part of the family and their ages.
eligible individuals can either request the credit to their monthly premium (in some cases, reducing the cost to $ 0) or choose to pay the total premium and receive credit when they file their next tax return.
You can also choose to receive a credit to your monthly premium and the rest during the tax filing. to estimate the possible tax credits, use calculators available GetInsured.
3 . a new year usually means a new franchise
Many, but not all, annual deductibles for health insurance are based on the calendar year, not a year from which your coverage began.
Whether you are currently insured through COBRA or a market plan, you may be responsible for a new franchise around the beginning of 2015.
When you start a new regime health insurance, you are responsible for a whole new franchise, whatever the time of year or how much you have already paid to franchise your previous plan.
So maybe you've chosen to keep your COBRA coverage when you might have switched mid-year (deadline for changing an ACA COBRA plan was postponed to 1 July).
"After all, who wants to lose the money they have already paid to an annual deductible and start over?" said Williams.
If your deductible will reset the rings in the New Year whatever plan you have, you might as well see if you can also get good coverage at a lower cost.
Those who sign up for a plan market before December 15 will have coverage beginning Jan. 1.
photo credit: Gopal Venkatesan via photopin cc
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