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Have I Really Found Cheap COBRA Insurance?
Old 12-17-2011, 10:00 PM   #1
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Have I Really Found Cheap COBRA Insurance?

Hi, I've been poking around on the net about COBRA health insurance, and it looks like I would be able to get a "not too horrible" premium for pretty good coverage. I've always heard how high COBRA was, so I was surprised to calculate that if I were to voluntarily quit my job, my COBRA monthly premiums would only be $333. Pretty low compared to the huge premiums I had been hearing about. The coverage I now have at work has no deductible, modest copays ($30 for PCP, $40 for Specialist) and I owe only 10 percent of the negotiated fee. And no exclusions for any particular illness. Doesn't sound too bad, as coverage goes, right? And I would keep this same coverage with COBRA, for $333 a month, as I lie on the riverbank and fish the day away. For 18 months, that is. I calculated $333 a month from the fact that the benefits blurbs my employer sends us state that they pay for 75 percent of the "cost" of the health care plan, and the employee bears the other 25 percent. I interpret that "cost" to be the premiums. Doing some basic algebra : I pay $83.24 a month in premiums for a single person, which is only 25 % of the real total premium, so the total is 4 times $83.24 = $332.96 per month. Does that sound right? I'll be sure to ask my employer what the premium would be on COBRA if and when the right time comes, but thought I would check in here first. Thanks, JG3
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Old 12-17-2011, 10:06 PM   #2
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Sounds about right and $333/mo for an individual person is about average. Individual employee premiums are usually $275-600/mo depending on group size/age/claims experience/etc. I have one group of 20 employees that has individual coverage at $176/mo for the best plan Aetna offers because most of the employees are in their 20's and healthy. Just be aware that if you have a health problem before COBRA ends, you may be forced to pay very expensive guaranteed-issue HIPAA rates when the COBRA expires. Buying an individual policy locks in your insurability and may be less expensive than accepting COBRA. Talk to an independent broker that knows your state's plans.
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Old 12-17-2011, 10:53 PM   #3
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You should bump that up by 2% for admin fees that could be passes on to you.

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Old 12-18-2011, 06:45 AM   #4
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We are paying $525.00 per month, with $3000.00 deductible.
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Old 12-18-2011, 08:57 AM   #5
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Health ins for wife and I goes up 12% in 2011 to $850 per month. This is (supposedly) 50% subsidized by ex megacorp. I believe I could get exc coverage for $1700 a month.
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Old 12-18-2011, 12:25 PM   #6
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Sounds good from my experience. I don't remember the exact numbers from the mid megacorp I left 6 months ago, but COBRA was just over $700/mo for a family and just over $500/mo for dual no kids as I recall. Don't remember seeing a quote for single...
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Old 12-18-2011, 02:39 PM   #7
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I would check for your employer - family coverage under COBRA runs $333 / week at my employer.
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Old 12-18-2011, 08:43 PM   #8
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Thanks for the replies. One of these days I'll get myself to talk to an insurance agent and find out what my individual single "free market" premium would likely be, should I choose to go the non COBRA route, with a pre-existing hypothyroid condition. Kind of a scary thought, to just quit, with no unemployment compensation coming in, but I could actually afford to do it, for many years, if I knew my insurance premiums would be approx $300 a month or less.
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Old 12-18-2011, 08:57 PM   #9
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Quote:
Originally Posted by John Galt III View Post
Thanks for the replies. One of these days I'll get myself to talk to an insurance agent and find out what my individual single "free market" premium would likely be, should I choose to go the non COBRA route, with a pre-existing hypothyroid condition. Kind of a scary thought, to just quit, with no unemployment compensation coming in, but I could actually afford to do it, for many years, if I knew my insurance premiums would be approx $300 a month or less.
Hypothyroid treated w/ medication really isn't a big deal for individual health insurance assuming under control. Most companies would still offer the best risk class for someone with this condition, possibly a small rate adjustment.
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Old 12-18-2011, 09:09 PM   #10
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<< Hypothyroid treated w/ medication really isn't a big deal for individual health insurance assuming under control. Most companies would still offer the best risk class for someone with this condition, possibly a small rate adjustment. >>

Thank you dgoldenz, that's great to hear !!
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