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6

My experience with leaving a job and COBRA coverage matches your understanding. Approximately 3 weeks after my last day I received the paperwork, the deadline for completing the paperwork was 45 days after the end of the insurance coverage. Therefore I had coverage with the new employer for several weeks before I had to decide if I retroactively needed the ...


6

There's a couple of nuances to bear in mind. If your employer is subject to COBRA requirements, as Ben Miller mentions, you'll be able to continue your coverage via COBRA as long as there was no gross misconduct. Continuation coverage must be continuous, you can't have a break in coverage. (e.g. if you lose coverage June 30, you cannot elect to have COBRA ...


5

Yes. COBRA is just a law that says your employer must extend a terminated employee's eligibility under it's health plan for 18 months, but you must pay the full premium and potentially an up to 2% administration fee. The general caveats are: there is a minimum employer size, you cannot be terminated for "gross negligence" but the termination can be ...


5

COBRA premiums are an HSA eligible expense, per page 8 of IRS Pub. 696: Insurance premiums. You can’t treat insurance premiums as qualified medical expenses unless the premiums are for: [...] Health care continuation coverage (such as coverage under COBRA). [...] Items (2) and (3) can be for your spouse or a dependent ...


5

Yes, you are generally eligible for COBRA if you quit your job. According to the Department of Labor's COBRA FAQ (Q5), "Termination of the employee's employment for any reason other than gross misconduct" is a qualifying event. When you use COBRA, you pay the entire premium yourself. Many employees have absolutely no idea how much their employer pays for ...


4

Based on the info provided in the comments in the question the following timeline seems to apply: Quit old job in July. Lose health coverage from employer on July 30th New employee coverage starts September 1st. Need to decide about COBRA in September. Because COBRA is retroactive, it takes weeks to get the forms to you and they give you time to decide, ...


4

COBRA can be enacted retroactively. You have 60 days to elect coverage, so you can wait until it's needed to enact it, but you will have to pay for the retro-active coverage. I did the same thing when I changed jobs last year and it saved me a ton rather than electing it right off the bat. From www.cms.gov: Qualified beneficiaries must notify the plan ...


4

Step 1: get the paperwork that you should have been given when you left the company. That should include information on who to contact with your old employer, or the old insurance company. They also may have included information beyond what is required by federal law. This additional information could be a FAQ or a series of scenarios. They should also send ...


3

Regarding question 1: No, many sources agree that COBRA premiums are not eligible for the self-employed health insurance deduction. The issue is that the insurance must be established under your name (if filing Schedule C, C-EZ, or F) or the name of your business. COBRA insurance is established under the name of your former employer, so it's not eligible. ...


3

COBRA provides you the option to continue your coverage as you had during your employment, after you leave your job. It is optional, you need to actively elect it. Once you elect, coverage starts from the day your employment coverage ends. So to answer your questions: Yes, it is legal. You elected this yourself, no-one forced you. You cannot get your money ...


3

The are two distinct parts to this answer: You can only contribute up to the HSA limit for 2019 if you have a HDHP eligible health plan for the entire year. If not, the contribution limit is reduced based on how many months of coverage there were. As long as you are eligible to contribute to an HSA, then how you contribute it doesn't matter. It can be by ...


2

Does the employer automatically terminate COBRA as soon as a dependent is covered by a new employer? No, COBRA will not be automatically terminated. You can keep COBRA when you get new coverage, and the rules about what it costs or how long it's available don't change, although COB rules dictate that the COBRA plan will automatically be considered secondary....


2

You asked, How I can get the COBRA not tough for me financially? The direct answer is, you can't. Since you don't have money socked away in an HSA, COBRA premiums cannot be paid pre-tax. The only option you have for getting a tax break of any kind related to COBRA is if your medical and dental expenses are above 7.5% of your AGI and you're itemizing ...


2

For the first four months of the year, when you were an employee, the health insurance premiums were paid for with pre-tax money. When you receive your W-2 at the end of the year, the amount in Box 1 of the W-2 will be reduced by the amount you paid for health insurance. You can't deduct it on your tax return because it has already been deducted for you. ...


2

This is kind of a subjective question but there are some common factors to consider. Is the coverage overall better on the private plan. In many (but not all) cases they are less coverage unless you get a higher plan on the market exchanges. What is the deductible on the private plan compared to what you have remaining on your COBRA plan? If the deductible ...


2

You asked two questions, My question is: Can I go to the doctor in this period? What health insurance do I present them? You can certainly go to the doctor whenever you want, insurance or not. Regarding your second question - if you were currently covered via COBRA, you would present that plan information. If you're not currently covered, you present no ...


1

Since you have a group number, I assume it's a company plan. Every company assigns someone in your company to be group administrator. That is who you need to speak to first.


1

There are several assumptions you made, that don't match the current laws: Preexisting conditions, are no longer a thing to worry about. When you stop your old policy they give you a Certificate Creditable coverage . The law only allows an exclusion of 12 months, but the certificate shows that you had coverage. As long as the coverage was for at least 12 ...


1

COBRA premiums are not deductible on 1040 line 29; to qualify, the IRS says the insurance plan must be in your name (COBRA is in your former employer's name). H&R Block confirms this.


1

If you are still covered as of the date of the doctors appointment, then the appointment will be covered under the rules of the old insurance company. Please be careful regarding the timing because if the appointment then triggers a need for an x-ray, lab work, or prescription then the date for those medical events could take place outside the window of ...


1

As long as you sign up for COBRA within 60 days of leaving work, it will retroactively cover you starting from the date you left work. (Yes, that means people can and often do "game the system" during a gap between jobs by waiting almost 60 days to see if they used coverage during that time, and sign up if they did, and not sign up if they didn't.) If your ...


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