Do I need health insurance during job change ?

[abhisheks77]

Hello,

I quit my job on 1st December, which terminated my (family) health insurance on same date. I started another job on 5th December at new place. As per their policies, new health insurance can be taken only starting from 1st of every month (will be 1st January in my case).
I am reading conflicting statements about health statements. Few posts say that there can penalty, if I do not buy insurance. Other posts say that I (and family) can stay without insurance for 60 days, without penalty.
IF, I need to buy separate insurance, can I go with something like www.domesticinsuranceusa.com (instead of COBRA, which can be expensive) ? I am on H1b, wife on H4 and son is US citizen.
Can somebody suggest on this ?

Regards
Abhishek

[SKDS160]

Hello,

I quit my job on 1st December, which terminated my (family) health insurance on same date. I started another job on 5th December at new place. As per their policies, new health insurance can be taken only starting from 1st of every month (will be 1st January in my case).
I am reading conflicting statements about health statements. Few posts say that there can penalty, if I do not buy insurance. Other posts say that I (and family) can stay without insurance for 60 days, without penalty.
IF, I need to buy separate insurance, can I go with something like www.domesticinsuranceusa.com (instead of COBRA, which can be expensive) ? I am on H1b, wife on H4 and son is US citizen.
Can somebody suggest on this ?

Regards
Abhishek

Yes you need to have health insurance all the time. If not, you must pay penalty while filing tax returns. There is no 60 days grace period that I am aware of. Cobra coverage suits you the best. I doubt you can get a better plan in market at this time which gives you the coverage as required by federal rules. If it is true the no harm to prefer that over Cobra.

[abhisheks77]

If I consider COBRA (or any other valid health insurance), it will be effective from tomorrow (12/11). Still I was out of insurance from 1st Dec to 10th Dec. Still I will be paying penalty ? How should I tackle with this now ?

[newacct]

You are exempt from the penalty for up to 3 consecutive months during the first coverage gap of the year. See Form 8965 instructions.

[abhisheks77]

You are exempt from the penalty for up to 3 consecutive months during the first coverage gap of the year. See Form 8965 instructions.

It is relaxed for me then. I can buy health insurance starting from 1st January.