Cobra cost
- Thread starter ImReady
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Did your employer report the total cost of health care on your W-2? That would be a place to start.
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?
btw if you resign, are you still eligible for COBRA?
Fedup
Thinks s/he gets paid by the post
That doesn't make sense. If you plan to leave soon then why are you afraid to ask.
pb4uski
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My former employer had such information posted on its intranet (available to employees but not the general public), along with 401k options, health insurance, etc.
AFAIK, that's fine as long as your plan offers COBRA continuation coverage.
Quitting your job counts as a qualifying event, just like being laid off.
https://www.dol.gov/sites/default/files/ebsa/laws-and-regulations/laws/cobra/COBRAemployee.pdf
Dash man
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We're paying $1414.06/mo for the plan through DW's old work for two of us. COBRA typically is 2% over the monthly cost of your old plan to cover administrative expenses, so when you do figure out the cost, add the 2%.
I resigned and cobra was available. I believe they have to offer it. Depending upon state, the length of time you are eligible for cobra may be different.
Some employers post the total cost on the annual renewal. Or that may have told you what % of the health care they paid...from this and knowing your contributions you should be able to calculate it.
See if your employer has a website for benefits. You may find info there. In the end you'll have to talk with HR.
scrabbler1
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I became eligible for COBRA when, in 2007, I reduced my weekly hours worked from 20 to 12, making me ineligible for their group health program. That was a qualifying event making me eligible for COBRA even though I was still working for the same company.
Before I reduced my weekly ours worked, I was paying 50% of the group health premiums and my employer was paying the other 50%. So, I simply doubled what I was paying, adjusted from a biweekly paycheck to a monthly basis, and tacked on another 2%. Because dental coverage was optional, I had a chance to drop it if I wanted to. I knew I would have some costly dental work in the next 18 months so I surely kept that coverage and got the costly dental work done before COBRA expired at the end of 2008.
Before I reduced my weekly ours worked, I was paying 50% of the group health premiums and my employer was paying the other 50%. So, I simply doubled what I was paying, adjusted from a biweekly paycheck to a monthly basis, and tacked on another 2%. Because dental coverage was optional, I had a chance to drop it if I wanted to. I knew I would have some costly dental work in the next 18 months so I surely kept that coverage and got the costly dental work done before COBRA expired at the end of 2008.
jonat
Recycles dryer sheets
COBRA costs are typically 102% of what the company pays for that coverage (including premiums that would be paid by employees.) When I retired last year I was astounded at the prices - over $12K/year just for a HDHP plan similar to what I had been on before, twice that for a traditional PPO plan. I am very fortunate that I retired under a program where my employer is paying my COBRA premiums for 18 months (and giving me cash to buy another six months.)
Thanks Michael. I did find a section on my W2 (Section 12DD) that shows the cost of employer sponsored health coverage. I'm wondering if I have to add my contribution amount on top of this.
jonat
Recycles dryer sheets
Yes, you do.
donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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.
Aiming_4_55
Thinks s/he gets paid by the post
If you sense they will "let you go", be sure to ask a month prior to your target departure date as unemployment benefits might be an option.
Just saying.
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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.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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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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.
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.
ocean view
Full time employment: Posting here.
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.
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.
Hyperborea
Thinks s/he gets paid by the post
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.
