DW has medical coverage under my megacorp plan. I will take layoff package 7/2021 and will go on COBRA with first three months subsidized. I only need two months since I turn 65 in October and will start Medicare. DW will start Medicare 12/2021. Can DW remain on my COBRA for October and November? There are lots of moving parts and just want to be sure of the rules. Thanks!
Cobra Continuation
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CardsFan
Thinks s/he gets paid by the post
You need to ask your company/insurer that one. Usually, yes. But everything is unique.
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Definitely check, but I doubt the answer is yes. Cobra is simply continuation of employer insurance, albeit with you footing 102% of the price.
If you left your job with no cobra, you cannot just say "hey keep my wife covered for a couple months" so I doubt cobra is different. You are primary, and you are required for her to be secondary.
She can pursue an ACA policy for the lapse period as a change in coverage would apply.
I believe you going on medicare is a qualifying event for your wife. See here https://www.dol.gov/sites/dolgov/fi...bra-continuation-health-coverage-consumer.pdf
On page 3. However definitely discuss with hr / insurance to make sure
On page 3. However definitely discuss with hr / insurance to make sure
Will do thanks for the link...Also found on page-7 info related to "second qualifying event"
Second Qualifying Event - If you are receiving an 18-month maximum period of continuation coverage, you may become entitled to an 18-month extension (giving a total maximum period of 36 months of continuation coverage) if you experience a second qualifying event that is the death of a covered employee, the divorce or legal separation of a covered employee and spouse, a covered employee's becoming entitled to Medicare (in certain circumstances), or a loss of dependent child status under the plan. The second event can be a second qualifying event only if it would have caused you to lose coverage under the plan in the absence of the first qualifying event. If a second qualifying event occurs, you will need to notify the plan.
I will reach out to Megacorp insurance folks to get clarification.
CardsFan
Thinks s/he gets paid by the post
But, he is leaving his job WITH Cobra, but only a few months. All plans are different, but I would definitely check.
EastWest Gal
Thinks s/he gets paid by the post
ACA might be cheaper, since there is no cliff this year. You might want to explore your state's plan. Either way, since it is just for a few months, before Medicare, you both might want to make sure that you get any screenings done before you leave your job. Avoiding using health insurance when you have a high deductible during those two months, if you decide to use the ACA. But check with your employer.
FloridaJim57
Recycles dryer sheets
My wife and I both went on my COBRA plan when I retired. But, when I hit 65 and went on Medicare, I had to discontinue COBRA. I filled out some forms to continue my wife, and they gave her an additional eighteen months. She is two years younger than me I might add.
24601NoMore
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ACA Premiums may be cheaper (especially if you can get any subsidies), but the deductibles are likely to be hugely higher.
Our own ACA Bronze HMO plan (literally the ONE choice we had on Healthcare.gov in our area) was $14K (!) in premiums for two people (one mid 50s, one early 60s) with $7,000 PER PERSON deductibles.
Yeah, I hate, hate, hate the "A"CA with the fire of a thousand suns. $28,000 per year for HMO coverage before the plan pays out a single penny? REALLY?!!
I've actually considered going back to w*rk for a short time just to get the healthcare coverage and (more importantly) being able to stay on COBRA for 18 months after that..
I'd be really surprised if there's an "A"CA plan out there that's even remotely competitive with COBRA in terms of premiums and deductibles, but guess it all depends on your local market, ages, etc.
By definition a Cobra policy should be less expensive than an unsubsidized individual policy (aka ACA). First, Cobra is priced for large groups, while the ACA is individual, so the higher Cobra volume drives substantial efficiencies. The large group employer market is also more competitive. These two factors alone ensure that for similar coverage a Cobra policy will be less costly (but still very expensive).
In addition, insurance is underwritten and priced to risk, so larger employer groups enjoy the benefit of lower individual risk. OTOH, an ACA policy is not underwritten and is priced to much smaller segments and risk groups, so individual risk is far higher. This is also reflected in the price.
This is a shock when individuals leave employer provided plans and enroll in individual health care.
In addition, insurance is underwritten and priced to risk, so larger employer groups enjoy the benefit of lower individual risk. OTOH, an ACA policy is not underwritten and is priced to much smaller segments and risk groups, so individual risk is far higher. This is also reflected in the price.
This is a shock when individuals leave employer provided plans and enroll in individual health care.
Telly
Thinks s/he gets paid by the post
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About layoff packages and COBRA... years ago, I got 6 months of megacorp insurance continuation, with megacorp picking up 100% of my portion of the premium that I had been paying for myself and family at megacorp. At the end of that, COBRA. COBRA allows dropping people off at your own discretion. I kept DW on COBRA, and dropped off myself and our kids. So DW was on COBRA that was enabled from my employment. I, and the kids, were never on COBRA. The point is, the ex-worker does not need to be ON COBRA, to allow COBRA coverage of other family members that were on the worker's insurance when employed.
FloridaJim57
Recycles dryer sheets
you are correct. This is exactly what happened to me. They gave my wife an additional eighteen months of coverage when I turned sixty five and went on Medicare.
