Fully subsidized COBRA and open-enrollment question
I got separated from my current employer a few weeks ago. A negotiated severance followed. The employer will pay 100% of my COBRA premiums for 6 months (till my severance lasts), and then give me $6k which is approximately the employee-portion of the premiums for another 24 weeks.
I am quite confused on how to make the best of this arrangement.
My open-enrollment window is till Dec-23. Should I choose a low-deductible plan under COBRA for 2023 since employer will pay 100% premium of whatever plan I choose? The low-deductible plans carry a higher premium, obviously.
I am hopeful of finding another employer within the next six months. But if not, can I terminate my COBRA plan after the 100% subsidy period ends around May 2023, and choose a marketplace plan with the 6k that I will get, for the rest of 2023?
When I was employed, I generally chose a high-deductible plan where my employer contributed $2k to my HSA ($1k twice a year). Employer won’t contribute to HSA as part of COBRA. Hence, I feel I should go in for a low-deductible plan especially as 100% of the premiums will be paid by employer.
Does anybody have experience or knowledge about this kind of situation? Thank you for your help!