OT: COBRA
- Thread starter RUSK97
- Start date
COBRA requires continuation coverage to be offered to covered employees, their spouses, former spouses, and dependent children when group health coverage would otherwise be lost due to certain specific events. COBRA continuation coverage is often more expensive than the amount that active employees are required to pay for group health coverage, since the employer usually pays part of the cost of employees' coverage and all of that cost can be charged to individuals receiving continuation coverage.
I think the prior employer is allowed to add an administrative fee, possibly set at 5% of the premium though I'm not sure about that aspect.
I believe that is correct.
I want to retire long before 65, but I am wondering with Obamacare, what kind of health insurance will I get before Medicare kicks in. I have been told that whatever it is it will be expensive and not good.
Maybe this link will help you find out if what you were told is true.
There are times we find out what we are being told isn't as bad as claimed, but sometimes it is worse than we were told it would be
Get 2015 health coverage now. Health Insurance Marketplace | HealthCare.gov
https://www.healthcare.gov/
If you have money it will be expensive but not necessarily bad coverage. If you don't have money , don't worry the rest of us will subsidize it for you and you'll be good to go.
It will be expensive but whether it's bad is up to you. If I recall, you own your own business? You can get some great polices through ObamaCare but they are expensive as hell and you won't qualify for subsidies. As a result, you will probably end up paying a lot for a plan with a huge deductible.
One thing to remember if you're going to do COBRA.....PAY YOUR BILLS ON TIME. And I mean that sincerely. Pay them early if you can. If you are one minute late getting your payment in, they will drop you and its a soul-crushing endeavor to try and get fixed. So, if you want to maintain coverage and not lose it, just make sure you pay the bill and confirm payment in as many ways as possible.
I disagree. Don't pay early. You have 45 days after you enroll to pay your first months payment. If you get a new job or gain better insurance some other way during that time and don't incur a claim before that coverage kicks in then you just drop cobra and save that first payment. Basically wait as long as possible to not pay.
Make sure the COBRA plan you will be on gives you that 45 days
What are the Premium Payment Deadlines regarding COBRA coverage?
A plan may not require
any payment until 45 days after the qualified beneficiary’s initial election.
If a qualified beneficiary fails to make the initial premium payment within
the 45-day period, the plan administrator may terminate the COBRA coverage.
Thereafter, payments are due on the first of each month, subject to a 30-day
grace period.
Check this link out to make sure you're on a plan that COBRA covers
(What Plans Are Not
Subject to COBRA?)
http://ww1.cobrainsurance.com/cobra_faq/
What are the Premium Payment Deadlines regarding COBRA coverage?
A plan may not require
any payment until 45 days after the qualified beneficiary’s initial election.
If a qualified beneficiary fails to make the initial premium payment within
the 45-day period, the plan administrator may terminate the COBRA coverage.
Thereafter, payments are due on the first of each month, subject to a 30-day
grace period.
Check this link out to make sure you're on a plan that COBRA covers
(What Plans Are Not
Subject to COBRA?)
http://ww1.cobrainsurance.com/cobra_faq/
Just to confirm what someone said above, you can continue your coverage for up to 18 months, but you need to pay the full cost, i.e., you pick up the part that your employer was subsidizing. I did that when we had to come back up to NJ with Tyler 3 years ago.
On the issue of paying early, quite a while ago if you faced the scenario mentioned above, where you got another job, it was possible to be considered to have a break in coverage which could come back to haunt you. However, I think many companies were phasing that out, and I believe Obamacare may have eliminated it. But.......just be damn sure the insurance kicks in on time with your new company, and make sure if you don't have a job that you get those premiums in.
And I almost bought a '97 before I found out about the '98 Camaro SS getting the Corvette engine dropped into it, which I ended up ordering.
One of my older brother's best friends when I was growing up had one of these:
And I almost bought a '97 before I found out about the '98 Camaro SS getting the Corvette engine dropped into it, which I ended up ordering.
this might be one of the best OT threads ever. Health insurance premiums are expected to rise between 30-55% for 2016.
Will be a HUGE issue to the country (some companies might tip to bankruptcy), economy, and many taxpayers in state and local
governments with a high # of UNION employees. It is one of the many reasons I was able to buy my house at a 25% discount, but
the entire NJ rea lestate market is in gradual free fall from Summit to New Providence (best butcher ever there--think it is spelled 'Barthes');
to New Brunswick, etc.
Will be a HUGE issue to the country (some companies might tip to bankruptcy), economy, and many taxpayers in state and local
governments with a high # of UNION employees. It is one of the many reasons I was able to buy my house at a 25% discount, but
the entire NJ rea lestate market is in gradual free fall from Summit to New Providence (best butcher ever there--think it is spelled 'Barthes');
to New Brunswick, etc.
So, I know this guy who is a millionaire, works hard, own may businesses ( gas station, liquor stores, jewlery store,...) and has his mother living with him.. She shows no income, no assets, hasn't worked a day in her life, came over to the US about 5-7 yrs. ago and the government pays for everything. She gets 100% insurance coverage, they send a van to pick her up at the son's house where she lives in style, the van takes her to a senior citizen home, pay for her food and she gets a monthly stipend. Not bad for someone that has never worked a day in her life, and she just got hip surgery which was 100% covered by the govt. My parents, who worked their entire life here, are now retired and have to pay for everything and here you have somebody who's never contributed a "dime" of taxes is getting better benefits than people who have worked their entire life here!
I know this is a football site but this just pisses me off and needed to vent!
I understand your frustration. The other day I saw a well-dressed lady in her sixties or so, paying for food with welfare card(Families first?). Then I saw her drive off with a new SUV(1-2 years old) from the parking lot.
Look at it on the bright side. If she didn't live with her son, the govt would have subsidized her rent or probably paid it in full.
It's a problem, but you're overstating it unless you're talking about a state other than New Jersey. The proposals for NJ were submitted to the state last week. The increases are WAY above inflation but not 30-55%. Horizon is looking for an average of 10.9% increase on their policies and other insurers are looking for anywhere from 9% to 19%.
ACA state exchanges
Though average rate increases hover in the single-digit range, actual changes and premium prices vary significantly across states. In states with approved rates, average rates range from a 22% decrease to a 35% increase (in Colorado).
Click on individual states in the map to pull up details on state ACA participation and 2015 premium rate filings.
http://www.pwc.com/us/en/health-industries/health-research-institute/aca-state-exchanges.jhtml
Though average rate increases hover in the single-digit range, actual changes and premium prices vary significantly across states. In states with approved rates, average rates range from a 22% decrease to a 35% increase (in Colorado).
Click on individual states in the map to pull up details on state ACA participation and 2015 premium rate filings.
http://www.pwc.com/us/en/health-industries/health-research-institute/aca-state-exchanges.jhtml
Better to have it for 18 months than not at all. Who knows what will happen in 18 months - you might be back at a W2 job or the laws could change.
That seems extremely high !!!
I would check wih Obamacare health care policies in the market exchange to see what the prices are before even thinking about committing to the above Cobra fees.
good luck !!!
For comparison, for a small business, our BCBS Total Advantage EPO is about $1400/month. Other than checkups, we must pay something like $6600 out of pocket before we receive any benefits whatsoever. That's special. A $17,000 premium, and we get nothing (except a checkup) until we cough up another $6600. I would love to be in the health insurance business.
I am guessing you have a plan with a 20 or 30 buck copay to go to any doctor in your network with no deductible. We played the odds, as we don't go to the doctor/hospital much at all, and we figured our plan worked for us by paying a lower premium.
QUOTE="MADHAT1, post: 423702, member: 1130"]ACA state exchanges
Though average rate increases hover in the single-digit range, actual changes and premium prices vary significantly across states. In states with approved rates, average rates range from a 22% decrease to a 35% increase (in Colorado).
Click on individual states in the map to pull up details on state ACA participation and 2015 premium rate filings.
http://www.pwc.com/us/en/health-industries/health-research-institute/aca-state-exchanges.jhtml[/QUOTE]
This source is inconsistent with what BCBS of NC is communicating. There are two insurance companies that cover the whole state: BCBS and United Healthcare. BCBS is asking for a 34.6% increase for ACA policies in 2016. No word from United, yet.
Though average rate increases hover in the single-digit range, actual changes and premium prices vary significantly across states. In states with approved rates, average rates range from a 22% decrease to a 35% increase (in Colorado).
Click on individual states in the map to pull up details on state ACA participation and 2015 premium rate filings.
http://www.pwc.com/us/en/health-industries/health-research-institute/aca-state-exchanges.jhtml[/QUOTE]
This source is inconsistent with what BCBS of NC is communicating. There are two insurance companies that cover the whole state: BCBS and United Healthcare. BCBS is asking for a 34.6% increase for ACA policies in 2016. No word from United, yet.
This source is inconsistent with what BCBS of NC is communicating. There are two insurance companies that cover the whole state: BCBS and United Healthcare. BCBS is asking for a 34.6% increase for ACA policies in 2016. No word from United, yet.[/QUOTE]
Found this in Blue Cross raises rate hike sought on Affordable Care plans :: WRAL.com (8/06 )article :
>A recent study by the nonpartisan Kaiser Family Foundation found that while increases for 2016 are generally bigger than they were this year, consumers still should have money-saving options to choose from. The study looked at preliminary data on premiums in major cities across 10 states, plus Washington, D.C.
Researchers found that premiums for a type of lower-cost plan that's used as a benchmark will increase an average of 4.4 percent for 2016. In most cases, consumers would have to be willing to switch plans to get a lower premium.
>UnitedHealthcare and Coventry Health Care also offered marketplace policies in North Carolina this year and plan to do so again in 2016. Coventry, a division of Aetna Inc., requested rate increases of between 17.2 percent and 25.8 percent. UnitedHealthcare wants an average 12.5 percent rate increase.<
http://www.wral.com/blue-cross-raises-rate-hike-sought-on-affordable-care-plans/14814644/
Found this in Blue Cross raises rate hike sought on Affordable Care plans :: WRAL.com (8/06 )article :
>A recent study by the nonpartisan Kaiser Family Foundation found that while increases for 2016 are generally bigger than they were this year, consumers still should have money-saving options to choose from. The study looked at preliminary data on premiums in major cities across 10 states, plus Washington, D.C.
Researchers found that premiums for a type of lower-cost plan that's used as a benchmark will increase an average of 4.4 percent for 2016. In most cases, consumers would have to be willing to switch plans to get a lower premium.
>UnitedHealthcare and Coventry Health Care also offered marketplace policies in North Carolina this year and plan to do so again in 2016. Coventry, a division of Aetna Inc., requested rate increases of between 17.2 percent and 25.8 percent. UnitedHealthcare wants an average 12.5 percent rate increase.<
http://www.wral.com/blue-cross-raises-rate-hike-sought-on-affordable-care-plans/14814644/[/QUOTE]
Thanks, Madhat. Hadn't seen the UH info yet. I got our "Platinum" coverage from them in 2015. 2014 was from BCBS. UH offered a better policy at a discount from what BC offered.
When I was on Cobra, just for myself, it was about $700 mth about 5 years ago. If you have several members than $2,400 is not outrageous. My sister in law gets insurance outside of Obamacare and for herself it's about $1,300 month. It's cheaper under Obamacare but she wants a HMO.
Last edited:
Actually you might think that is high but if you went to the private insurance market outside of Obamacare you probably would pay $3,000-$4,000 if your family members don't have any medical conditions.
You have to remember your rate is base on a group rate for your company and if you go to the private market, your individual rate is going to be a lot higher.
