Exit Strategy

[brewer12345]

Looks like I may have a departure faster than I originally expected.  Other than cleaning out my desk before I drop the bomb, what should I be considering?  How should I manage a potential short term gap in medical coverage?  My understanding is that COBRA coverage can be instated retroactively to the date of employer provided coverage ending if you get your check in up to 45 days after departure.  If this is true, then I would plan on going naked for two weeks and if anything happened I could quickly send in a check so that things are covered.  Sound reasonable?

 

[cute fuzzy bunny]

Somebody brought up the cobra thing before and I believe thats the case...even if you get your check in the mail after 44 days you've got coverage. Check your states COBRA and HIPPA rules...in my state if you complete Cobra and then apply for coverage and are rejected, HIPPA requires the insurer to take you anyhow, just like you were a new group member.

All I can say is do it with class, or at least with style...take the time to thank the people you did enjoy working with and those who helped you. Keep your network intact.

When I went, I had the benefit of a long friendly period with a known end-date. I made sure I had all of my documents and info from the company owned equipment. I got everybodys phone number and email I wanted as I wouldnt have the company directory anymore. I got my own system set up with the connectivity, software and info I wanted. I made sure to pack up any company owned hardware, software, info etc and had that out of my house and in my office, signed off by the boss that he was in receipt of it.

You might want to start applying for your new medical coverage right away. It may take some time. Blue Cross fiddled around with me for two months, then verbally accepted me, then rejected me in writing over a 3 year old minor variance in a test that wasnt reproduceable, then I had to force them to take me via HIPPA.

See if your bank is going to start doing anything funny to you if you stop direct deposit of your check and if the funny stuff is too much, find another bank. Mine was pretty good - they pay a little less interest without direct deposit, stop reimbursing you for out of network ATM expenses and a couple of other things. My wifes was awful...they start charging you $3 every time you talk to a teller, start charging monthly fees on all your accounts, etc. You might need to join a credit union to get good terms and might need to still be employed to join the CU you want.

Apply for any HELOC's, credit lines or other stuff that might require current employment. Honestly I've had no trouble getting a 100k heloc and several credit cards even quite recently. But I can see where some folks with limited credit or glitches on their credit report might not get it so smoothly.

Make yourself a list of things you want to do, that'll give you something to engage yourself while you wind down. You might only get to 2-3 things on the list, but then it'll become a source of joy knowing there are tons of things to do, you arent doing them, and nobody will be getting on your back about it.

 

[Brat]

I know that for many of you the following is extreme, but this will give you a picture of a common business practice when a key person with access to trade secrets or financial information terminates.  It may or not be relivant to Brewer.

Expect that the moment that you give notice your employer will convert your notice period to paid time off (if you are lucky), take your keys, lock you off the system , secure all of their assetts in your custody and walk you to the door.  It has nothing to do with you as a person, it has everything to do with protecting the business.  Prepare accordingly.

I would apply for COBRA within 30 days even if you expect to obtain other coverage soon.  The cost isn't worth the risk. If you are over 55 your state may extend the period of available COBRA coverage to the date you qualify for Medicare.

If you are married and your wife employed where health care coverage is available, your wife's employer may permit her cover you (your loss of coverage may be a qualifiying event).  

You want to be sure that any personal information that is on your employer's computer is removed.  The advise of a knowledgable profssional may be valuable.  

Review your personal contact list to assure that you have all the names and addresses you need for your summer BBQ.

 

[haha]

I would apply for COBRA within 30 days even if you expect to obtain other coverage soon.  The cost isn't worth the risk.  If you are over 55 your state may extend the period of available COBRA coverage to the date you qualify for Medicare.

Brat, if I remember correctly you live in WA. Does this extension of COBRA coverage until the age at which one can apply for medicare apply in WA?

Thanks, Mikey

 

[brewer12345]

Hmmmm...

HELOC is in place, although I went for cheaper rates rather than the biggest line I could get.

I am leaving to go to somewhere else, so direct deposit, etc. is unlikely to be an issue. (As an aside, I use Schwab for banking services, and they are very good to customers they want to keep; they even stopped charging me for online bill-pay several months ago without me notricing until recently). Similarly, health insurance should be coming on line pretty soon after I leave, just wanted to know what my options are in the week or so that I might not be covered.

I will have taken everything I want/need before dropping the bomb. I would be thrilled if they gave me a check and told me to get out, but I suspect that will not been the case. Recent history with others suggests that I will probably be kept around to do menial nonsense and just be excluded from the more sensitive stuff.

 

[eridanus]

If this was a few years ago and you were working for a dotbomb, the common response would've been to start grabbing equipment.

If you have a laptop you want to keep, ask your boss if you can buy it (obviously after wiping company info off). If it's old enough, it may have been depreciated to nothing anyway.

Be careful about applying for COBRA retroactively. I don't think this means you can get run over, apply for it the next week, and all will be covered.

Also, company health plans are expensive. It'll preserve your HIPPA continuance to go with COBRA but you'll pay for it.

 

[Martha]

www.healthinsuranceinfo.net not only gives states by state consumer guides on health insurance plans, but also on COBRA. Brewer, you might find some stuff there that is helpful to you.

Brewer, did you get another job?

 

[Brat]

Mickey, it does in Oregon.  I had occassion to learn about that as my brother is over 55, covered through his wife's employer and they going through a divorce.  There are a couple coverage issues such as size of employer and minimum period of employment before the qualifying event.. neither of which came in to play so I didn't drill down on the details.

COBRA isn't cheap, but it is cheaper than needing care with no coverage. For example, hubby had routine surgery last year, the hospital billed $7,000+, Medicare paid ~ $2,000, BC ~ $800. Talk about discounts!!! If he were 62 and we didn't have insurance the hospital would have demanded $7,000+ out of our pocket.

 

[Nords]

I will have taken everything I want/need before dropping the bomb.

- If you rate it, get a complete medical & dental checkup. Get those annual blood tests (cholesterol, PSA, whatever gender-specific details you monitor). Get a good dental cleaning and check for cracked fillings or other handiwork. Decide whether you have any work-related injuries or allergies or disabilites and what action you want to take.

- Pack out all personal belongings. Replace your desktop stuff with old coffee cups, old pencils, etc and keep the good stuff at home.

- Buy whatever discounted merchandise you really want to take with you. That includes company t-shirts, logo golf balls, wall art, matching 401(k) contributions, after-tax contributions, discount stock purchases, or accelerated options. (Hey, maybe this all applies to you!)

- Max out any other unused employee benefits while you're still an employee who can benefit.

- See if any co-workers or subordinates need performance reviews or recommendation letters or other favors from you. It carries more weight when they say "I am" rather than "I useta be".

- Lunch out with your friends once or twice and place mental bets on who's gonna stay in touch with you.

- Try to think of it as "gaining altitude" instead of "carpet bombing". Write a nice letter, give the required notice, stay smiling, polite, & professional. Save the high explosive for the supplemental exit-interview letter that you'll mail a month after your departure. (Chance are you'll discover it's not worth mailing anyway.)

- Unless you're an extrovert, pass up the farewell party. It's probably not one of your top-10 favorite activities anyway.

- Endeavor to leave in such a low-profile manner that a couple weeks later one of your co-workers says "Hey, where's Brewer? Is he still on vacation or out sick?"

 

[Brat]

Excellant post Nords!!!

 

[GTM]

Generally most firms will extend you medical and dental coverage until the last day of the month that you leave.

So if you leave on the 1st or 2nd of the month you should get free insurance until the 30th or 31st.

Begin your Cobra coverage on the first day of the following month so you will never be without insurance and still get a free month.

 

[brewer12345]

Good suggestions from all. Looks like I am going to jump ship soon. The majority partner of the new co. indicated that another partner would call me this week and make me an offer. We were both on the same page WRT start date, etc., so what would have to be worked out is money and some daily schedule stuff (I am facing a godawful commute, so I want to be in early and out early). Since the lead partner said if the offer isn't what you want, just tell us, I suspect that we will not have a tough time coming to terms.

Put it this way: I went out and bought a bottle of champagne (cremant de Limoux, really) and stuck it in the fridge this weekend.

 

[BigMoneyJim]

Pick up a Johnny Paycheck CD while you're out.

I kept my opinions to myself when quitting, but I somehow really enjoyed playing "Take This Job and Shove It" over and over for a couple of days.