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Health care insurance costs.
Old 12-06-2012, 04:55 AM   #1
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Health care insurance costs.

I am quite shocked at some of the high health care insurance costs reported in this forum. Although I am aware that in general health care insurance costs are high I have found the Cobra plan here in Ohio for our company plan to be somewhat reasonable. I hope our human resource manager hasn't missed telling me something.
Anyway, I am planning on retiring on March 1, 2013 and I am 63 and my wife is 62. Our HR manager told me the Cobra premiums for our company health care insurance will be $886 / mo. For the family plan. ($10632 / yr.) and we have a great plan with only a $500 single / $750 family deductible.
Don't misunderstand me, I still think this is a lot of money, but compared with other posts in this forum with $2000 / $3500 deductibles this seems like a bargain. I know our company shops insurance hard. It's a small private family owned company with 250 people. They have mandated things like free annual blood work, attendance at at least 6 lunch and learn sessions ( they provide a free healthy lunch), and pay half of membership in local fitness centers
I am going to double check with our HR manager, I sure hope she hasn't missed anything. I have checked on other possibilities and haven't really found anything that offers as good of coverage with such low deductibles. Plus we are very familiar with how our insurance works. And company owners have told us they don't plan on making any changes, citing they want to offer good affordable health care so they can attract good employees. I am still keeping my fingers crossed until I see my first bill.
Cjacks
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Old 12-06-2012, 05:40 AM   #2
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Your COBRA premium is not that far from what I am paying - $457 solo (DW is on Medicare), $1500 deductible.
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Old 12-06-2012, 10:34 AM   #3
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That's a good deal, but not outrageously good. My COBRA was higher (~$950 IIRC) but was for a high deductible plan.
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Old 12-06-2012, 11:04 AM   #4
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When I left the workforce at 52, I did not take Cobra for my family of 3. At that time, it was something over $800 a month which included dental and vision also. Instead, I got a family plan at Kaiser for under $400. Since then, my kids aged out and I have a individual plan.

In 2009, I paid $299 a month...for 2013 it will be $444. I did lower my coverage and chose an HSA plan in 2010 which reduced the premium. However the premium has gone up about 10% each year. So, I plan for that increase annually. I still have 5 years until I am eligible for Medicare.
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Health care costs.
Old 12-06-2012, 06:11 PM   #5
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Health care costs.

Ok, I checked today and our HR manager confirmed the monthly payment would be $834 /mo. which $52 less then I thought. Our plan does not include dental and vision. The reason I started this post is because I found another post where a couple people said they were paying $20,000 / yr. with $2000 deductibles. At this point I assume there was more to the story. Anyway I am open to suggestions. I am ok with $834/ yr but would like to pay less.
Cjacks.
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Old 12-06-2012, 09:40 PM   #6
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Quote:
Originally Posted by cjacks View Post
Ok, I checked today and our HR manager confirmed the monthly payment would be $834 /mo. which $52 less then I thought. Our plan does not include dental and vision. The reason I started this post is because I found another post where a couple people said they were paying $20,000 / yr. with $2000 deductibles. At this point I assume there was more to the story. Anyway I am open to suggestions. I am ok with $834/ yr but would like to pay less.
Cjacks.
We are in the $20k with $2k deductibles range. Actually, higher, but at this point it doesn't matter. Two things probably lead to your premiums so being so much lower. First, you are in a large group with a lower median age. Second, the employer pays part of the premium. Your premium looks to be competitive with what you would be paying for Medicare including supplemental insurance. After 18 months the COBRA provisions expire but then you will have access to your state health exchange options, which hopefully will be in the same price range. Good luck!
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Old 12-07-2012, 10:43 AM   #7
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mike b has it right. Your company plan is the same regardless of your age but adjusted by the average of the group. and he is also right it only for 18 months. 18 months is not a very long time.

I did not go this way two years ago as I was worried that I might become uninsurable do to some illness. Which never happened but is always a threat.

With the new rules I would like to know this; lets take your example... would your insurance quote be the same for an outside company now as compaired to a quote 18 months from now if your health changes dramatically?
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Old 12-07-2012, 11:36 AM   #8
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mike b has it right. Your company plan is the same regardless of your age but adjusted by the average of the group. and he is also right it only for 18 months. 18 months is not a very long time.
I am in COBRA now for over 18 months. I qualified for an additional 18 months when DW went to Medicare. It is through what they call Second Qualifying Event. Note that this a COBRA provision and not a company policy.

I will be in Medicare way before the 18 months is used up.
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