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Medical Insurance Gap

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  • Medical Insurance Gap

    I've looked at similar threads, but none are quite the same:


    I have a wife and kids and am looking at a ~100 day gap in health insurance.  Three calendar months will have no days of coverage, so I believe I'll be subject to the ACA tax-that-isn't-a-tax if I don't pay for COBRA.  This tax would be greater than what it would cost me to obtain 1 month of ACA bronze plan coverage in order to avoid the tax.  In rough numbers, COBRA = $2k/month, ACA bronze = $1k/month, ACA penalty/tax = 1.5k for 3 months.


    So, my current plan:

    - Sign up for COBRA by day 60 after notification (approx 80-90 days into the gap).  Don't pay premiums yet.

    - Sign up for Bronze ACA plan ($1000) for the 3rd full month that is currently uncovered to avoid the tax($1500), with no plan to utilize the policy.

    - If no medical issues arise, cancel ACA/don't pay COBRA when the new insurance is in effect.

    - If a little medical issue arises, pay out of pocket.

    - If a more serious issue, back-pay premiums for COBRA within the 60+45 day window, as deductibles/maximums are far lower than the ACA plan.

    - In any case, campaign with HR to decrease the 90-day wait for new hires in the future.


    Does this work?