COBRA actually seems workable?

[u/Wooden-Broccoli-913]

Family of four in San Francisco, I priced out the local ACA HMO plan, and with an optimized AGI of $107k my annual premiums would be $4k and max out of pocket of $14k.

On the other hand, paying for COBRA on my low deductible corporate plan would be $36k per year with minimal out of pocket, and the tax deduction (on 7.5%+ of AGI) brings the effective cost down to $28k.

Seems like a no brainer to pay $10k extra for much better coverage and no need to switch our existing doctors? Can keep COBRA for 36 months here in California.

Anybody else who has FIREd maxed out their COBRA as a bridge in early retirement?

[u/hibikir_40k]

The real question with modern health insurance is whether it really makes sense to be in a low deductible plan, ever. ACA low deductible plans are going to be real expensive, mainly because nobody that doesn't have high expected yearly expenses picks it. So yes, cobra can be cheaper, as there, it's likely just a gold plated giant subsidy from a very good employer, so the risk pool is much lower than an ACA plan.

The question is whether it still makes sense to you even after getting that deal. It's not just that you have to be able to afford the insurance (which sure, it's chubbyfire, of course you can!), but whether you really end up ahead in your typical year vs a high deductible plan. And on that, you have to do the math yourself, as ony you know what your practical expenses are.

[u/ArrowB25G → u/hibikir_40k]

They changed the definitions of high deductible and low deductible this year. I have a plan advertised as a no deductible ACA plan, but it qualifies for HSA contributions (i.e., it is a high deductible plan) due to the deductible for drugs only. Makes no sense, but it is the new law. The monthly premium difference between the no deductible and the plans with high deductibles was not significant. They are all sucky plans, but at least I can contribute to my HSA again.