From what I can determine so far, Cisco is giving people taking the ER a lump sum large enough to cover 9 months of the current insurance benefits. The problem is, apparently, that after those 9 months, which would be around the end of July 2021 (assuming you start paying the COBRA premiums this November) you'll have to stay on COBRA for the rest of 2021. Evidently, during the insurance enrollment period in 2021, November, you can drop COBRA and get a different insurance policy, but that won't be effective until January 2022. From what I understand, cancelling COBRA prior to the 2021 enrollment period is NOT a special enrollment qualifying event, forcing you to keep COBRA the rest of the year. Assuming $2K per month, COBRA is going to cost you $10k out of your pocket. Thoughts?
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You can elect to drop COBRA at any time. But, in order to enroll in a new plan, you have to sign up during the relevant open enrollment periods.
Just because Cisco gives you 9 months of COBRA premiums based on the costs of your current benefit elections doesn't mean you have to spend it on COBRA. In my case when I was LR'd, I found a new job, but wasn't eligible for health benefits until the 1st of the month after 30 days of employment. I paid for COBRA for basically 3 months and dropped it the month my new employer's benefits started. I think I paid for 3 months COBRA and pocketed 2 months since the LR benefit was only 5 months of COBRA.
Your best bet is to stay on COBRA through the end of this calendar year to maintain your deductible since you're already 2/3rds of the way through the benefits year, and then switch to a new employer's plan or whatever they're calling what was the Affordable Healthcare Act's market place during the Nov/Dec open enrollment and start a new coverage in Jan with a new deductible since your COBRA deductible will reset then.
My current contracting company has a weird benefit year and it runs 4/1 - 3/31. The health care deductible resets on 4/1, but the dental resets on 1/1. It's FUBAR'd.
You should be able to change your COBRA coverage (elect another insurance policy) during this November's Open Enrollment Period.
"As far as private insurance, why would you have to wait till January? Can't you get it any time of the year, especially if you have NOT LAPSED in coverage?"
It appears that canceling COBRA doesn't qualify as a special enrollment event. I want to cancel next year around April to get a cheaper policy for retirement. Not eligible for medicare yet.
COBRA might be the best deal that you can get.
You should be entitled to have it for 18 months, and if the company is paying for 9 months of it, count your lucky stars.
As far as private insurance, why would you have to wait till January? Can't you get it any time of the year, especially if you have NOT LAPSED in coverage? Or are you talking about Medicare?
$2k a month is a good realistic number to budget in.
Look into forming a 1099. Lots of business out there running as an independent contractor, it just won't be under Cisco. Get a good accountant and form an LLC. Lots of work but worth it. It is your journey. Own it.
COBRA is essentially keeping the plan you have, and paying out of pocket after 9 months. Why would you change, or want to, except maybe to switch to the lower premium/high deductible plan. Plusses and minuses to any decision w/r/t COBRA.
2k a month isn't that expensive when it comes to health imo