Healthcare and Taxes

[katstache92]

I recently resigned from my job to take a new one in a different state.  Because of this interstate move, I have 2.5 weeks between jobs so I can move but I have no insurance.  I think I can retroactively do Cobra if needed?  But I'm really not sure.  I am also not eligible for healthcare with my new company until the 31st day of employment.  So I have over 6 weeks of no insurance.

I thought I was fine with dealing with Cobra if it was needed during that time period.  But I realized today that there's that question when you are doing taxes that asks if you've had insurance for the last 12 months.  I won't be able to say yes for 2018.  Is this a major cost when it comes to tax time?  Should I get insurance somewhere?  I have no idea what the right thing to do is.  I haven't been in this situation before.  Any advice would be appreciated.  Thanks!

[MDM]

There is an exemption for a "short coverage gap" of one or two months.  If it is only 6 weeks, you will be fine as far as the tax goes.  Up to you on the coverage itself.

[katstache92]

Thank you!  That is so good to know.

How do I know about Cobra and if I can use it retroactively if something happens?  Or should I find something else?

[MDM]

How do I know about Cobra and if I can use it retroactively if something happens?  Or should I find something else?

I've read some things about retroactive COBRA but wouldn't necessarily count on it.

In general, there is no easy answer for those six weeks because it depends on your health and lifestyle and the cost.  E.g., for $10/wk "of course" and for $10K/wk "no way" would probably be reasonable answers.  In between...?

[Miss Piggy]

Thank you!  That is so good to know.

How do I know about Cobra and if I can use it retroactively if something happens?  Or should I find something else?

If you are convinced you will do something, why would you not just do COBRA?

[DreamFIRE]

Thank you!  That is so good to know.

How do I know about COBRA and if I can use it retroactively if something happens?  Or should I find something else?

You should look into it to confirm from an official source, but I think you have 60 days to sign up and that the coverage is retroactive to the first day without insurance, but you have to back-pay the premiums.  I was on COBRA for a few months when I started a new job some years back.

[Proud Foot]

Thank you!  That is so good to know.

How do I know about COBRA and if I can use it retroactively if something happens?  Or should I find something else?

You should look into it to confirm from an official source, but I think you have 60 days to sign up and that the coverage is retroactive to the first day without insurance, but you have to back-pay the premiums.  I was on COBRA for a few months when I started a new job some years back.

This has been my experience with COBRA. Once the company processes everything to get you removed from the health insurance you should receive a COBRA notice which will outline all your options and the monthly premiums.