Screwed by Covered* California (ACA/Obamacare)

[KK9]

4. Sorry about your job :(

The insurance issue will be OK, though.

Yes, you use COBRA to fill the gap and it doesn't have to cost you money. Even if you work for a small employer, like we do here in Mass, California has a "Mini COBRA" law, where employers with between 2-19 employees are required to offer COBRA continuation of coverage.

Here is what you do:

1) Get the COBRA election form from your employer
2) You have 60 days from the date they send you the form to make the election
4) Once you make the election, you have 45 days to pay the premium
5) Once you pay any back premiums, you have coverage RETROACTIVELY to the date you lost your coverage

So, 105 days from the date you are sent the election form, which is more than enough to get you through until August.

What I've done in this situation is to fill out and sign the election form and write a check for the premium(s) and tell someone I trust where I'm keeping it. That way, if I get hit by a car or have some other medical disaster and am unable to make the election myself, my "assistant" will mail it in, securing me the retroactive coverage so that any bills get paid by insurance.

The only catch is hanging onto enough money to pay the premiums when you've just lost your job...but it's better than going entirely uninsured or actually paying those expensive COBRA premiums when you can least afford it. The chances you will need to use the coverage between now and August are slim, so it's highly like you can both make sure any bills will be covered AND avoid paying those COBRA premiums.

If you have a minor health issue between now and August, it's a math exercise, will the bill be more or less than the COBRA premium?