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Old 03-20-2017, 07:37 AM   #21
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When we left for Medicare ours for two was up to ~$1,300 a month. Glad to have it then, but now all in we're about $500/month
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Old 03-20-2017, 08:16 AM   #22
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Take the amount from the W-2 plus your contributions * 102%. In all cases annualized if the amounts for some reason are for less that a year That should be in the ball park.
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Old 03-20-2017, 08:32 AM   #23
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Mine is going to be about 1300 per month for DH and I, vs. something like $200 per pay period (2x month) while on severance. It's more expensive than most non-subsidized plans, but it's also far better coverage, lower deductibles, network issues, etc.

I believe most states are the same, maybe even a federal thing? Cobra is available for 18 months after company paid medical, regardless of termination reason. I'm on severance now, and will still be able to Cobra at the end of it.

Given the uncertainty in the HC situation, I plan to take up Cobra in August when my severance ends, and keep it thru at least 2017. Swapping to a brand new plan mid-year would mean my deductible contribution would start from scratch, but mainly it's just nice to know I've got the same comprehensive coverage, docs, etc., vs. shopping for a new plan mid-year and then having to potentially do the same for 2018.
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Old 03-20-2017, 10:07 PM   #24
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Don't forget that if you work one day into April, for example, you are covered for the whole month. So your cobra payments wouldn't start until May. As you plan your final day, make sure it is just after the start of a month not at the end.

Also in these final months, start to get any "maintenance" check-ups done, just in case you decide not to do cobra. We found that ACA was considerably cheaper (even with no Fed premium supplement) for that first year, so we only used cobra for vision & dental.
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Old 03-20-2017, 10:29 PM   #25
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We found that ACA was considerably cheaper (even with no Fed premium supplement) for that first year, so we only used cobra for vision & dental.
I'm using COBRA coverage for my health insurance. It depends on what your income for the year will be as to whether ACA will be cheaper. I have a bunch of deferred compensation that pays out this year and that means that I get no subsidy under ACA. The cost of my COBRA is about the same as a decent plan under ACA but the COBRA has far better coverage. For the OP it depends on how much income he will have this year - from his job, any payouts, and then the investment income.

I didn't find the cost of the vision or dental to be worth it though it's a bit of a crap shoot. If you end up needing major work then you will have done better to have the coverage. Even the cost of my crown a few years back + the checkups would be about the same as the COBRA dental so it would have to be something really major to make it worthwhile.
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Old 03-20-2017, 10:40 PM   #26
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Don't forget that if you work one day into April, for example, you are covered for the whole month. So your cobra payments wouldn't start until May. As you plan your final day, make sure it is just after the start of a month not at the end.
Good reminder. This happened with me and it was a pleasant surprise. When I reduced my weekly hours worked from 20 to 12 and lost eligibility for group health coverage, I went on COBRA. But because my last day of work fell on Friday, June 1, 2007, I remained covered by my group health for the entire month of June (including the 50% employer subsidy) and didn't begin COBRA until July.
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Old 03-20-2017, 11:33 PM   #27
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The comments about the cost being over $1000 per month for a couple are right on. I'd guess about $15K to $20K per year for a couple.


My cost was almost $1,400/month just for me. Well over $20K/Year if I also covered DH.
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Old 03-21-2017, 05:44 AM   #28
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Last time for me (2014), it was going to be around $2K for our family of 3. It really depends on the rates negotiated by your employer with the particular insurance company they use. And, yes, typically tack on 2% in administrative fees to that.
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Old 03-21-2017, 05:57 AM   #29
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Last time for me (2014), it was going to be around $2K for our family of 3. It really depends on the rates negotiated by your employer with the particular insurance company they use. And, yes, typically tack on 2% in administrative fees to that.
This really depends on many things. What the plan is (what it covers), deductible, MOOP, network, size of employer, location, and demographics of the employees in the company. I worked for a company mostly composed of young healthy people... rates were quite affordable both at the company and when I left and took time off. The company was set up so cost for insurance was not age rated... Cobra was age rated either.
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Old 03-21-2017, 06:54 AM   #30
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Anyone know how I can find out the monthly cost for Cobra insurance through my employer? I'm planning to resign soon and afraid if I ask the Human Resources department they will suspect I'm leaving.
Since it is tax time, I have received a form from my employer that stated I had insurance and also stated the monthly cost for that insurance. They were paying $1,268/month for myself and my SO. COBRA should be 102% of that.

I have already passed the form on to my tax accountant so cannot grab you the name, sorry.
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Old 03-21-2017, 07:31 AM   #31
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One would also need to consider what the employee pays for coverage in addition to what the employer pays and the 2% administrative fee.
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Old 03-21-2017, 08:05 AM   #32
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One would also need to consider what the employee pays for coverage in addition to what the employer pays and the 2% administrative fee.
True. I do not pay anything toward insurance (except the Tax on my SO's part), so mine is the full cost.
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Old 03-21-2017, 08:48 AM   #33
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Just started COBRA

I just started COBRA this month for the next 18 months and as a single it runs at $502 per month including dental and vision. To be added to my DW insurance was over $700 per month, so in my case COBRA was far cheaper.

Our HR department was the only avenue to give me accurate numbers to work with. Mine is a HDHP as well which kept costs down further.

Of note COBRA is competitive for a single, but it gets very expensive quickly when you add additional people like any kids or spouse. Marketplace could be cheaper then.
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Old 03-21-2017, 11:14 AM   #34
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I just got this from our HR. The one with my current group plan will be $1450/month for me and spouse. If I add our 2 adult children (one in college, one ready for graduate school), total will be close to $2000/month.
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Old 03-23-2017, 06:07 AM   #35
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I wanted to know my Cobra rates too as I am getting close to throwing in the towel. Was concerned about word getting back to our small company leadership but I called our Medical provider and told them I needed complete confidentiality and asked what my Cobra rates would be. It was $1,100 a month for wife, daughter and I for both Medical and a Dental. I did not trust HR so I went to the provider for the info. Most understand HIPAA confidential matters in the HR world.
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Old 03-23-2017, 06:56 AM   #36
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You need to find out what your company's total premiums are. I read somewhere recently that the average corporate policy covers about 70% of premiums. If so the typical COBRA policy would cost more than 3 times the employee rate.
The employee portion varies dramatically. At our company we pay 95% of the cost. The total cost is provided at open enrollment as part of the benefit materials, so it is there for all to see. In fact we like letting people know how much we pay for them.

At our company, and at my wife's employer (they also publish), monthly cost for a couple or a family is in the $1400-1600 range.

Yes, if you ask the cost outside of open enrollment, HR will know you are contemplating leaving.
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Old 03-23-2017, 08:54 AM   #37
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Okay - still a bit confused on whether the W-2 amount is total (employee + employer) or just employer contribution.

MBSC (post #19) indicates it is total cost. However, others (e.g. jonat) seem to indicate it is just company contribution.

However, the IRS link provided my MBSC seems pretty clear. I just want to make sure as I think about moving into RE and want to know COBRA costs for the first 18 months of retirement.

Thanks!
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Old 03-23-2017, 09:38 AM   #38
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Perhaps your a call to your health insurance provider can tell you. Be prepared, it'll be far more expensive than you're paying now. Mine is about $580/mo for a single (my share was well under a hundred while employed). yikes!

btw if you resign, are you still eligible for COBRA?
I think there's some confusion from this. Your share of your healthcare was $100, not how much the company paid for each employee's plan. I'm on Cobra now and it's just over $500 per month. If I was still working that is what my employer would be paying for me.
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Old 03-23-2017, 09:58 AM   #39
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Okay - still a bit confused on whether the W-2 amount is total (employee + employer) or just employer contribution.

MBSC (post #19) indicates it is total cost. However, others (e.g. jonat) seem to indicate it is just company contribution.

However, the IRS link provided my MBSC seems pretty clear. I just want to make sure as I think about moving into RE and want to know COBRA costs for the first 18 months of retirement.

Thanks!
Lets straighten one thing out. Your initial cobra cost will last typically until year end. Just like when you are working, the plans usually change at the beginning of the new year. Prices and plans can and usually will change. At least the pricing. Short comment - don't expect cobra to hold the same plans and prices for 18 months.

I can't comment of the W-2 data. I don't remember.

But then... I asked HR about the cobra cost with the CEO and CTO in the same meeting... and I was just a normal engineer.
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Old 03-23-2017, 10:27 AM   #40
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When I was laid off in early 2013 I went onto Cobra coverage to continue Health Insurance for myself and DW for the rest of that year. It was $1359 a month. That was painful.
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