Author Topic: New Job, New Health Insurance  (Read 1229 times)

Cromacster

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New Job, New Health Insurance
« on: October 24, 2016, 10:31:45 AM »
Hi Everyone,

I will be starting a new job soon and my current insurance will end on Oct 31st.  I will have about a month gap.  I could do Cobra, jump on my wifes plan, get a marketplace plan, or go without a plan for a month.

My current plan is an HSA plan and the new workplace is not HSA eligible to my knowledge.  If I switch to their plan will my HSA contributions become ineligible or is it based on time I've had each?  IE 5/6 of the year on HSA so I can contribute 5/6 of 3350?

Also If I decide to go with no insurance through the gap is that a no no under ACA?

I also have some ongoing appointsments that I need to evaluate if I still want to go through with them after the change.

Any insight on health insurance changes with job changes will be helpful.

Thank you

seattlecyclone

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Re: New Job, New Health Insurance
« Reply #1 on: October 24, 2016, 02:01:02 PM »
Hi Everyone,

I will be starting a new job soon and my current insurance will end on Oct 31st.  I will have about a month gap.  I could do Cobra, jump on my wifes plan, get a marketplace plan, or go without a plan for a month.

My current plan is an HSA plan and the new workplace is not HSA eligible to my knowledge.  If I switch to their plan will my HSA contributions become ineligible or is it based on time I've had each?  IE 5/6 of the year on HSA so I can contribute 5/6 of 3350?

The contribution limit is pro-rated based on how many months you had qualifying coverage on the first day of the month.

Quote
Also If I decide to go with no insurance through the gap is that a no no under ACA?

You can go without health insurance for up to two months without owing a penalty for failure to have health insurance.

One thing you may not be aware of with COBRA is that you have 60 days after leaving your previous employer to elect this coverage. If you do elect it, the coverage is retroactive to the date your previous insurance lapsed. A common strategy for this situation of a short break in coverage is to plan on going without insurance and then electing COBRA for that month if it turns out that it would have saved you money.

Cromacster

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Re: New Job, New Health Insurance
« Reply #2 on: October 24, 2016, 02:29:20 PM »
Awesome,  thanks for the input Seattle!