Obamacare: end exchange plan when new job benefits start

Can I sign up for health insurance on the exchange but leave it when I get a job that has benefits?  I want to know if a person is forever forced to stay in federal government health insurance program once enrolled or can leave when get new job which offers health coverage.

Watching The Exits

Dear Watching The Exits,

When your health insurance from your job begins, you would no longer qualify for subsidized health insurance from the exchange.  At the point, you would simply discontinue your exchange health insurance and have your group insurance cover you.

You would notify your insurer that you wish to end your plan.  They will end your coverage, and will no longer bill the government for whatever subsidies you were receiving.  You will get a statement, Form 1095-A, about the subsidies that you received for your tax filing for that year.  You will need that statement to complete Form 8962.  A draft version of Form 8962 instructions is available.

Your employer will list your new health insurance on your W-2 form.  So, you will have proof that you had coverage for the whole time period.  (You are allowed a three-month gap, in any case, without having to pay a penalty.)

You can go ahead and sign up for the exchange plan, knowing that the route to the exit is safely clear!

Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.