Health Coverage Transition

Household of two · Montgomery County, Ohio · employer coverage ends 3 August 2026 · reviewed 28 July 2026

3 days
until Friday 31 July — the last day a marketplace plan can be selected and an 1 August effective date requested, which would close the coverage gap outright. Then six days until coverage ends, inside which the health FSA must be spent down (about $1,308 otherwise evaporates) and eight documents collected from HR — above all the year-to-date deductible figure, the number that decides everything after.
FSA forfeited if unspent
$1,308
Full $3,400 election available now, regardless of contributions
COBRA, medical, per month
$1,952
Up from $443 today — a 4.4× jump
Employer contribution ending
$17,648/yr
Carry this into every W-2 offer negotiation
2027 subsidy at stake
$14.6–19.3K/yr
Lost entirely one dollar above $86,560 of MAGI

Monthly premium, two adults age 56 — what is actually available

Marketplace COBRA

Marketplace figures are derived estimates from filed Montgomery County age-27 rates converted on the federal age curve, cross-checked to within 4% of Ohio's published benchmark. COBRA is derived from payroll; the election notice is authoritative. Note that COBRA and the cheapest gold plan are the same number, and that gold costs only about $400 a year more than silver for roughly ten more points of actuarial value — because this household receives no cost-sharing reductions and so pays silver's loading for nothing. The cheapest silver and cheapest gold are different carriers, so compare gold against silver within one carrier once you have narrowed by network.

Table view
OptionPer monthPer yearNote
Cheapest expanded bronze$1,420$17,040HSA-qualified; high deductible
Cheapest bronze$1,615$19,380HSA-qualified
Cheapest silver$1,920$23,040Pays the CSR loading for no benefit
COBRA, medical only$1,952$23,424Keeps PPO, formulary, and accumulated deductible
Cheapest gold$1,955$23,460~80% actuarial value for ~$400/yr more
COBRA, medical + dental + vision$2,042$24,504Dental and vision may be separately electable

The August decision — worth about $8,500

Path A · bronze from 1 SepPath B · COBRA Aug–Dec
Premium Aug–Dec~$5,680~$9,761
Deductible creditresetscarries over
NetworkHMO, no out-of-networkexisting PPO
Formularyre-adjudicated; step-therapy riskunchanged
HSA$10,750 availablenone
Premium deductible?yes, §162(l)probably not

Path A's ~$8,500 gross advantage is eroded by the deductible reset, full-cost brand medication before the deductible, HMO network risk, and the HSA last-month-rule testing period running through 31 Dec 2027. Decide by 25 September.

The 2027 cliff — worth $15–19K a year

It is a step, not a slope. Replacing the lost credit takes roughly $26,000 of additional gross income — so MAGI between $86,560 and about $113,000 is a dead zone in which earning more leaves the household poorer. That is a pricing constraint on consulting revenue and a reason a December invoice may belong in January.

What to do, in order

  1. Call 1-800-318-2596 before Friday 31 July

    Ask whether an 1 August effective date is available for a 3 August loss of coverage. 45 CFR 155.420(b)(2)(iv) permits it if a plan is selected by the last day of the preceding month; sources conflict on whether HealthCare.gov exercises the option. The downside is nil — the fallback is 1 September either way, and plan selection is not effectuation.

  2. Spend the health FSA down — assume the deadline is 3 August

    The full $3,400 election is available regardless of contributions to date, and the employer cannot recoup. Glasses, dental, prescriptions, diabetic supplies, over-the-counter items. The expense must be incurred while covered. Health FSA coverage most commonly ends on the termination date itself, not month end — confirm, and assume the earlier date.

  3. Do not sign or return any COBRA waiver

    COBRA elected in the window is retroactive to the loss date. Declining nothing costs nothing and covers the 4–31 August gap for free. Signing a waiver destroys that. Leave the box blank.

  4. Get eight documents from HR while still on the payroll

    Exact coverage end date · Summary of Benefits and Coverage · year-to-date deductible and out-of-pocket accumulation · FSA run-out deadline · group life certificate and conversion forms · COBRA administrator · insured or self-funded · any COBRA subsidy in the severance.

  5. Decline the LifeX arrangement

    See the verdict below. Do not enroll, pay a premium, sign a W-4 or I-9, or provide a Social Security number or banking details.

  6. Verify network and formulary at the plan level, not the carrier level

    All 130 Montgomery County marketplace plans are HMOs with no out-of-network benefit. Kettering Health is accepted by all eight carriers; Premier Health appears in only four. Call the practices directly.

  7. Resolve group life by ~3 September

    31 days to convert without evidence of insurability — application and first premium. Shop underwritten term in parallel; conversion is the backstop, not the default.

  8. Model 2027 MAGI with the CPA in October

    Solo 401(k), HSA, §162(l), and income timing against the $86,560 cliff. Establish the retirement-plan structure while there is still time to act in 2026.

Deadlines

Verdict on the broker-presented plan Decline

The plan document names no insurer and no stop-loss carrier

Across 41 pages the funding type is recorded only as "Employee and Employer Contributions." A self-funded plan financed solely by member premiums, advertising an unlimited annual maximum, cannot pay a catastrophic claim. The question you asked the broker — what pays a $500,000 claim? — is answered by the document itself: nothing does.

FindingDetail
Three state regulatorsNamed consumer alerts — Maine 24 Nov 2025, Tennessee 23 Feb 2026, Louisiana 21 Apr / 4 May 2026 — stating the sponsor, administrator, and captive are not licensed
Federal lawsuitElevance, Anthem, and the BCBS Association sued for trademark counterfeiting: "selling consumers an employee benefits health insurance plan that does not exist"
Second lawsuitAIG sued the affiliated captive and its principal — the same individual is an officer of the claims administrator
Benefit caps30 inpatient days a year · 30 chemotherapy days · acute temporary dialysis only · no out-of-network transplant
Out-of-pocket limitExcludes balance-billed amounts and a 50% preauthorization penalty — so it is not a limit
PrecedentOhio's Thin Blue Line collapse (3,400 members, now in liquidation) and the Innovative Partners receivership, whose receiver states most claims "will remain unprocessed and unpaid"
Guaranty fundNone — not federal, not state. Enrollees become unsecured creditors and stay personally liable to providers

Verify any agent and company before further contact: Ohio DOI agent locator and authorized company search, and Consumer Services on 800-686-1526. Nothing here requires assuming the individual agent knows what is behind the product — it does not change the answer.

Seven facts that would change the recommendation

#QuestionHolder
Q1Exact date coverage terminates — the 3rd or the 31st?HR
Q2Unspent FSA balance and the claim run-out deadlineFSA administrator
Q3Year-to-date deductible and out-of-pocket accumulationCarrier / HR
Q4The actual COBRA rate on the election noticeCOBRA administrator
Q5Hospital system and physicians in-network, per planCarrier directories, by phone
Q6Group life conversion versus portability termsLife certificate
Q7Formulary tier, step therapy, and copay accumulator, per planCarrier pharmacy benefit

Q3 is the one that decides August. Q2 has the shortest fuse. An adversarial verification pass on 28 July corrected four items in the underlying analysis: 1 September is the default marketplace effective date rather than the floor; gold costs ~$400/year more than silver rather than the same; the spouse-W-2 small-group route is unavailable under 29 CFR 2510.3-3(c)(1); and the FSA window likely ends on the termination date rather than month end.

Research and analysis only — not enrollment, tax, legal, or medical advice, and not an authorization to contact any broker, insurer, or employer. Figures labelled derived or estimated must be replaced with quoted numbers before they decide anything. Full sources in the accompanying briefing.