Author Topic: Potential pitfalls of a "gap month" between Cobra and ACA?  (Read 1219 times)

geekette

  • Handlebar Stache
  • *****
  • Posts: 1841
Potential pitfalls of a "gap month" between Cobra and ACA?
« on: March 12, 2014, 08:52:28 AM »
We're currently paying $1150/month for Cobra medical coverage for the two of us, and we're eligible to continue through January of next year.  I keep looking at the ACA policies, which are cheaper, at least on the surface (i.e. they don't cover as much), and thinking of jumping ship.

Cobra allows us to pay any time during the month for that month's policy (April's payment is due any time in April).  If I don't pay in April, the policy lapses as of the end of March.  If I sign up for an ACA policy later this month, with an effective date of 5/1/14, it seems like I could skip April's Cobra payment.  If something horrid happens during the month, I'd just have to log on to the Cobra site and make an online payment.  If something horrid happens in the last couple days of April, that could be a problem.

Are there any reasons (other than a last minute April emergency) to not take advantage of this one time savings opportunity?


MDM

  • Walrus Stache
  • *******
  • Posts: 9412
Re: Potential pitfalls of a "gap month" between Cobra and ACA?
« Reply #1 on: March 12, 2014, 10:18:50 AM »
If the situation is as you described, then your conclusion seems correct.

One thing that would nag at me (at least until someone more versed in insurance practices could comment) would be the resulting "1 month gap in coverage."  But with ACA that might not matter...?