Cobra

[milford]

After being laid off earlier in the year I became eligible for COBRA for the standard 18 months. I was given a fee schedule which was the same price for all 18 months (~$700). I still keep in touch with my ex-coworkers and they told me that open enrollment this year has an 8% increase in premiums for them. Is my company eating the 8% difference for next year or will they adjust my COBRA payment going forward?

 

[tony554]

COBRA costs 2% (as an administrative fee) over what the employer’s cost for the insurance. If the 8% increase of open enrollment is driven completely by the cost of insurance to your prior employer, your cost should go up by that much as well.

 

[Aerides]

When I went on Cobra, I still had to go thru the standard year-end-enrollment in November for the following year. I had to pick the plan and price just like as if I was employed.

Your situation appears different since I didn't get any 18 month fee schedule, but was told clearly from the start that it would work the same as for employees. If unsure in your case you might want to reach out to your plan admins and/or HR from your company.

 

[scrabbler1]

When I was on COBRA back in 2007-08, the monthly rate went up at b08. I don't recall if the 2007 rate mentioned was going to be unchanged, although I didn't expect t to remain the same. Before I went on COBRA, my employer was paying 50% of the premium. This meant I paid twice that amount (plus the 2%) after I went on COBRA.

 

[cathy63]

After being laid off earlier in the year I became eligible for COBRA for the standard 18 months. I was given a fee schedule which was the same price for all 18 months (~$700). I still keep in touch with my ex-coworkers and they told me that open enrollment this year has an 8% increase in premiums for them. Is my company eating the 8% difference for next year or will they adjust my COBRA payment going forward?

You need to ask your former employer if you are subject to the increase. Normally you would have to go through open enrollment and your rates would go up, but perhaps there was a clause in your severance package that exempted you.

 

[milford]

Logged back into my account today and they changed the fee schedule starting next year with the increase , will be going to ACA anyways.

 

[camfused]

^^^ bummer, but still check out your cobra dental and vision rates, since they may be better than what you can get in the marketplace.

 

[gauss]

Will you make less than 400% of the Federal Poverty Level and thus possibly qualify ACA subsides? This may be a more economical choice if it applies to you than Cobra where there is no subsidy. With ACA and a subsidy your premiums would be no more than 10% of your Modified AGI income.

If you are over the 400% FPL threshold then there might not be any advantage after all in going with ACA.

-gauss

 

[milford]

Will you make less than 400% of the Federal Poverty Level and thus possibly qualify ACA subsides? This may be a more economical choice if it applies to you than Cobra where there is no subsidy. With ACA and a subsidy your premiums would be no more than 10% of your Modified AGI income.

If you are over the 400% FPL threshold then there might not be any advantage after all in going with ACA.

-gauss

Thanks for reminder, yes I believe I'll be under that threshold since my primary income will only be investment income and CD interest.