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Obama care and my 85% coverage.
Old 05-26-2013, 05:22 PM   #1
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Obama care and my 85% coverage.

Stuck it out 30 yrs at mega corp, hired on at 22.
One of the main things that kept me going was health care in ret.
When I leave, I will have 85% medical and 80% for my better 1/2.
How does Obama care affect my situation?
Or does it?

Thanks
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Old 05-26-2013, 10:20 PM   #2
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Right now, companies that have retiree coverage are free to end it whenever they want to. After 1/1/2014, companies are still free to end it whenever they want to.

The difference is that pre-1/1/2014 if a company ended retiree coverage you might find it impossible to buy coverage on the open market. From 1/1/2014 on, if your company ends retiree coverage you will be able to buy coverage on the exchange for your state.
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Old 05-26-2013, 11:48 PM   #3
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Quote:
Originally Posted by almost there View Post
Stuck it out 30 yrs at mega corp, hired on at 22.
One of the main things that kept me going was health care in ret.
When I leave, I will have 85% medical and 80% for my better 1/2.
How does Obama care affect my situation?
Or does it?

Thanks
I don't think anyone really knows what will happen. I would suggest staying the course for now. Many aspects of OC will be changed, not funded, or the whole thing thrown out. I see some people who mistakenly think in January 2014 they will magically get insured with someone else paying or subsidizing the bill. Not going to happen when the dust settles - economics are not there.
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Old 05-27-2013, 12:17 AM   #4
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Quote:
Originally Posted by almost there View Post
Stuck it out 30 yrs at mega corp, hired on at 22.
One of the main things that kept me going was health care in ret.
When I leave, I will have 85% medical and 80% for my better 1/2.
How does Obama care affect my situation?
Or does it?

Thanks
Good question. As others have noted, only the good faith of your megacorp keeps your medical plan intact, and many companies have cut their retirees health plans. As life insurance salesman have told me repeatedly, "expect the best, plan for the worst" (I'm assuming they tell everyone else that also ").

AFAIK, if your megacorp keeps your plan, you are not affected very much, just changes to your coverages in line with the law, like the preventive care coverages that have already happened. But if your megacorp cuts your plan, until you reach medicare age, you probably would have to go through an exchange. And that will depend upon the State in which you live. The only numbers that I've seen are California's, which were not too awful.
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Old 05-27-2013, 06:50 AM   #5
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I recently read an article about Massachusetts' health care experience. People expected employers to drop coverage as the program kicked in but that didn't happen. In fact coverage increased a bit, posibly as employees tuned in to the real costs of insurance and demanded coverage. Employers provide coverage to compete for workers. Hopefully, the same dynamics will play out with Obamacare which has a stronger disincentive (employer tax penalty) for dropping coverage that does Massachusetts. Only time will tell.
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Old 05-27-2013, 10:25 AM   #6
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Quote:
Originally Posted by donheff
I recently read an article about Massachusetts' health care experience. People expected employers to drop coverage as the program kicked in but that didn't happen. In fact coverage increased a bit, posibly as employees tuned in to the real costs of insurance and demanded coverage. Employers provide coverage to compete for workers. Hopefully, the same dynamics will play out with Obamacare which has a stronger disincentive (employer tax penalty) for dropping coverage that does Massachusetts. Only time will tell.

MA has a number of advantages

1) The MA plan was broadly supported and developed in consultation with employers, unions and many interests.

2) MA has a lot of white collar jobs and so always had a high percentage of coverage.

3) The culture in MA is receptive to providing health insurance and the Government mandate was not very contentious. People wanted to make it work.

The opposition to ACA will make it difficult for it to work as well as MA health reform
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Old 05-27-2013, 03:49 PM   #7
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I have assumed that if my megacorp drops my coverage, I would need to go to the buy my own and under OC on the exchange. Here is a good Forbes article discussing what is happening so far in 3 western states. It looks like costs are not going to sky rocket.

"For quite some time, I have been predicting that Obamacare would likely mean higher insurance rates in the individual market for the “young immortals” and others under the age of 40. At the same time, my expectation was that those who fall into the older age ranges would benefit greatly as their premium charges would be lowered thanks to the Affordable Care Act.

It is increasingly clear that I had it wrong."

Unexpected Health Insurance Rate Shock-California Obamacare Insurance Exchange Announces Premium Rates - Forbes
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Old 05-27-2013, 05:32 PM   #8
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I don't think the issue will be cost initially as the exchanges get started but supply and demand. Too many people, not enough doctors. As reimbursements decline doctors, who spend another 8 to 12 years after college getting still want and need to be fairly compensated, as a result more will probably go the concierge medicine route.

I think everyone has been too focused on short term cost, but that said, if your state has a good exchange and a good patient to provider ratio you may not see much of a difference assuming you qualify for the subsidies. No difference then if megacorp changed your carrier.
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