Katsmeow
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 11, 2009
- Messages
- 5,308
So I just got the annual enrollment for DH's retiree insurance from Megacorp. The new increase is $301 a month! Ouch. The is a subsidized plan but a few years ago they began limiting subsidizing increases to 5% per year. This has resulted in dramatic increases in premiums.
We are on a high-deductible plan for me and kids. (DH is on Medicare). The history of the cost of this plan over the past 3 years:
2012 - $180 a month
2013 - $479 a month
2014 - $780 a month
This is for a plan with a $3000 family deductible, $7000 in network Out of pocket max (out of network limits are higher). Also, megacorp (who is self-insured) switches from Aetna to United Healthcare for 2014.
If unsubsidized the premium would be $1242 a month.
Right now, the subsidized premium is probably approaching the premium for an unsubsidized younger family on an ACA exchange. Since I'm almost 60 I think an ACA policy would cost more than this, but it is hard to get exact numbers. Given the amount of uncertainty with ACA right now (particularly not being to easily find out who is in networks), I'm not going to jump to ACA this year.
However, next year I would think we would definitely look into it.
Other observations:
We can keep kids on the megacorp policy until the end of the year in which they turn 26. But there may come a time when it is cheaper to drop their coverage and go ACA for them even if I stay on the megacorp policy. My premium for 2014 would be $433, so we are paying $327 to be able to include the kids. At some point when all are out on their own, I expect they would be eligible for subsidies such that it would cheaper for them to get their own ACA subsidized policies.
Another interesting thing is the insane cost of getting the non-high deductible policy offered by megacorp. The non-high deductible policy has a $750 deductible (which doesn't apply to prescriptions but it does apply to prescriptions on the high-deductible policy). The in network out of pocket max is $6000. So, if you think you will hit the out of pocket max you don't save much by going for the high deductible policy.
Anyway that policy is $2274 a month or about $18k a year. Basically you would be spending $18000 a year more to get a $2500 lower deductible, a $1000 lower out of pocket max, and prescriptions not subject to the deductible. The $2274 a month policy has co-pays for doctors visits instead paying 80% which may end up being cheaper but can be more expensive. In any event, I can't envision a scenario where it would make sense to buy the $2274 a month policy.
So - for this year - we will stick with this but in a year we will reassess it.
We are on a high-deductible plan for me and kids. (DH is on Medicare). The history of the cost of this plan over the past 3 years:
2012 - $180 a month
2013 - $479 a month
2014 - $780 a month
This is for a plan with a $3000 family deductible, $7000 in network Out of pocket max (out of network limits are higher). Also, megacorp (who is self-insured) switches from Aetna to United Healthcare for 2014.
If unsubsidized the premium would be $1242 a month.
Right now, the subsidized premium is probably approaching the premium for an unsubsidized younger family on an ACA exchange. Since I'm almost 60 I think an ACA policy would cost more than this, but it is hard to get exact numbers. Given the amount of uncertainty with ACA right now (particularly not being to easily find out who is in networks), I'm not going to jump to ACA this year.
However, next year I would think we would definitely look into it.
Other observations:
We can keep kids on the megacorp policy until the end of the year in which they turn 26. But there may come a time when it is cheaper to drop their coverage and go ACA for them even if I stay on the megacorp policy. My premium for 2014 would be $433, so we are paying $327 to be able to include the kids. At some point when all are out on their own, I expect they would be eligible for subsidies such that it would cheaper for them to get their own ACA subsidized policies.
Another interesting thing is the insane cost of getting the non-high deductible policy offered by megacorp. The non-high deductible policy has a $750 deductible (which doesn't apply to prescriptions but it does apply to prescriptions on the high-deductible policy). The in network out of pocket max is $6000. So, if you think you will hit the out of pocket max you don't save much by going for the high deductible policy.
Anyway that policy is $2274 a month or about $18k a year. Basically you would be spending $18000 a year more to get a $2500 lower deductible, a $1000 lower out of pocket max, and prescriptions not subject to the deductible. The $2274 a month policy has co-pays for doctors visits instead paying 80% which may end up being cheaper but can be more expensive. In any event, I can't envision a scenario where it would make sense to buy the $2274 a month policy.
So - for this year - we will stick with this but in a year we will reassess it.