A while back, I put up a pair of posts examining the factors to be weighed by people faced with a choice between continuing an employer-sponsored health plan via COBRA or buying a health plan on an ACA exchange.
Once case involved a couple, ages 62 and 57, navigating a simultaneous retirement and divorce. As both are subsidy-eligible, an ACA plan yields big savings. The other involved a single New York-based 31 year-old who's been continuing good coverage via COBRA and is at the edge of subsidy eligibility. An ACA plan would slash his monthly fee considerably, even without subsidy, while offering more restrictive coverage.
COBRA is likely to be the better choice, however, for older insurance-seekers who are not eligible for subsidies. Employer-sponsored insurance is usually not age-rated -- that is, it doesn't cost more for older plan members -- and the coverage it offers generally has a higher actuarial value than the ACA's benchmark silver plans. ACA plans are more modestly age-rated than plans in the pre-ACA individual market -- the ratio of oldest to youngest is capped at 3-to-1, versus the 5-to-1 cap that most states allowed pre-ACA. Still, many older buyers can leverage the lack of age rating in their ESI to get better coverage for the same price than on the exchanges.
If Plato Were Still Around
7 minutes ago