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Old 05-30-2014, 01:56 PM
 
243 posts, read 534,181 times
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My husband changed his job in March. Our health benefits at the new company start only end of June. We have a period of almost 3 months when we are not covered by insurance. We are a family of four with two young children. The cobra continuation coverage premiums are as usual high. My children and I will out of the country most of June.

Is it necessary for us to take cobra ( we have a few more days to decide). The new company benefits do not care if we have a gap in coverage or not. They (and their health care providers) also say they don't care about pre existing conditions. Their benefits will start end of June and they don't need any other conditions to be met.

I am not sure as far as the ACA is concerned. Does the affordable care act stipulate that we should not have a gap in coverage? Will there be a tax penalty because of this? Or will this be excused as we are going from one coverage to another albeit with a gap?

We tried getting some other private insurance but with my husband and I and my children being in different states for now and we visiting from one state to another frequently, we did not find any insurance that met our needs satisfactorily.

Do we need to bite the bullet and take cobra or is a gap ok? Thanks !
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Old 05-30-2014, 05:03 PM
 
Location: Wisconsin
20,834 posts, read 41,536,073 times
Reputation: 14055
You're right on the cusp at three months. You are allowed to be without coverage for less than three months without a penalty.

That said, the penalty is prorated for those three months - it isn't going to amount to a lot of dollars - prorated at either 25% (3mos) of 1% of your 2014 income, or $71.25 (($95 x 2 = $190) + ($47.50 x 2 = $95) = $285 x 25%), whichever is less - explained, here:

Quote:
  • $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.
If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured. If you’re uninsured for less than 3 months, you don’t have to make a payment.

https://www.healthcare.gov/what-if-i...alth-coverage/
Assuming your children are under 18, your fine/tax/penalty for those three months is $71.25.
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Old 05-30-2014, 10:21 PM
 
243 posts, read 534,181 times
Reputation: 75
Quote:
Originally Posted by Ariadne22 View Post
You're right on the cusp at three months. You are allowed to be without coverage for less than three months without a penalty.

That said, the penalty is prorated for those three months - it isn't going to amount to a lot of dollars - prorated at either 25% (3mos) of 1% of your 2014 income, or $71.25 (($95 x 2 = $190) + ($47.50 x 2 = $95) = $285 x 25%), whichever is less - explained, here:

Assuming your children are under 18, your fine/tax/penalty for those three months is $71.25.
Thank you....
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