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Leaving Your Job? Exchanges Have Insurance Choices


Meanwhile, the average monthly cost for single coverage in an employer-sponsored plan is $490, according to the Kaiser Family Foundation’s 2013 employer health benefits survey. (KHN is an editorially independent program of the foundation.) But the employee pays just $83 of that amount, because the employer covers 83 percent of the total, on average. Once people sign up for COBRA, however, they're typically responsible for the whole premium.

Despite its generally higher cost, COBRA may appeal to some people, say experts, including those who want to maintain access to a particular network of providers. And even though the COBRA premium may be higher, if you've already satisfied the deductible on your employer plan for the year, "you might not want to flip over to a new policy where you're going to have a new deductible," says Amy Bergner, a managing director at PwC Human Resource Services.

Some outstanding questions about COBRA and eligibility for exchange coverage remain. The Treasury Department and the Internal Revenue Service have proposed that workers who become eligible for COBRA because their hours are reduced be treated differently than those who leave their jobs. "COBRA eligibility for someone who is still working will be treated like any other offer of employer coverage," according to the IRS. "If it's affordable, then the employee will be barred from the premium tax credit, whether or not he enrolls." That regulation has not yet been finalized.

In addition, people sometimes become eligible for COBRA through divorce or the death of a covered employee or, in the case of an adult child, "aging out" of their parents' plan.

"The proposed regulations don't make it clear what happens with people who are eligible for COBRA because of their relationship to someone else," says Park.

Please send comments or ideas for future topics for the Insuring Your Health column to .

Kaiser Health News is an editorially independent program of the Henry J. Kaiser Family Foundation, a nonprofit, nonpartisan health policy research and communications organization not affiliated with Kaiser Permanente.

Mon, Dec 19 2011

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