Holy Carp... COBRA is expensive!

[Jeeebus]

How in the hell does anyone afford COBRA medical insurance? My new job's insurance doesn't kick in until October 1, so I was looking at the COBRA options sent to me by my previous employer. Insurance for family is something like $2,200/mo.

Thankfully, COBRA is retroactive, so if I happen to sever a limb before October 1, I can sign up for COBRA and have it covered, which presumably would be cost effective at that point. No idea how anyone unemployed could possibly afford these shenanigans.

Here's to livin healthy... at least until Oct. 1.

 

[Praxis1452]

Probably because it's retroactive, and thereby the only people who take advantage of it are those who are hurt/injured/sick.

Retroactive insurance doesn't even seem like insurance to me. It's a guaranteed loss, and thereby charity.

 

[Jeeebus]

Probably because it's retroactive, and thereby the only people who take advantage of it are those who are hurt/injured/sick.

Retroactive insurance doesn't even seem like insurance to me. It's a guaranteed loss, and thereby charity.

Right, but you only have something like 45 days from notification to sign up, so it's not entirely retroactive. In my case, I'm generally safe, but if someone is unemployed for six months, they have no choice but to pay the money.

 

[Praxis1452]

Right, but you only have something like 45 days from notification to sign up, so it's not entirely retroactive. In my case, I'm generally safe, but if someone is unemployed for six months, they have no choice but to pay the money.

Ah ok, didn't know that. Still a 45 day retroactive date probably does increase the price quite a bit.

 

[SunnyD]

Obamacare?

 

[Genx87]

I believe Cobra allows you to buy your plan at the price your employer was paying.

 

[boomhower]

I believe Cobra allows you to buy your plan at the price your employer was paying.

That's my understanding, you are just paying both your portion and their portion.

 

[rudder]

I had a similar situation... I went to a local insurance company (Blue Cross Blue Shield of TN) and purchased gap insurance for my family for about $200/month. High deductibles and stuff... but it was just temporary. You are paying for the top of the line policy.. that is why it is so high.

 

[sjwaste]

It's expensive b/c your employer no longer subsidizes it at all. It's their group rate, but you pay all of it.

Turns out, your health insurance premiums are a pretty significant part of total compensation.

 

[ThePresence]

Cobra can be expensive or cheap, it just depends on what your plan was with your previous employer. Cobra itself just keeps the plan going. The difference is that you're paying all of it now.

 

[Phoenix86]

Right, but you only have something like 45 days from notification to sign up, so it's not entirely retroactive. In my case, I'm generally safe, but if someone is unemployed for six months, they have no choice but to pay the money.

Of course people have a choice. If you don't have the money (because you just lost your job) you go without. Hello emergency room visit for a cough due to cold!

Good luck staying healthy!

 

[Riverhound777]

You just go without. I went 6 months before my current job. But I rarely see the doctor, didn't really care.

 

[kranky]

PA just announced their high-risk insurance plan for people with pre-existing conditions. It's a plan for people who need insurance until Obamacare kicks in in 2014, but can't get it for pre-existing conditions.

$1K deductible, $5K out of pocket max with most things covered at 80% if done in-network, no lifetime cap. Around $250 a month for the insurance. Only for individuals, no family plan.

I thought that was a pretty sweet deal for people who need insurance, but you must prove you have one of the pre-existing conditions. Seems odd that a healthy person, who might find that plan very affordable, can't qualify.

 

[spidey07]

You had better be REAL CAREFUL HERE!!!!

If you don't have group coverage for 30 days all kinds of shit starts getting messed up like your new insurance won't cover things and your costs can be much higher. NEVER LET YOUR GROUP COVERAGE LAPSE! You lose all sorts of protections if you do.

Go to eHealth insurance and pick/hop on a cheap GROUP plan. It must be a GROUP PLAN, that is a big distinction.

 

[FelixDeCat]

I paid $651.49 per month for Cobra back in 2008 for myself alone.

edit: How is the fish with the bishops hat and cross relevent to the OP?

 

[Jeeebus]

edit: How is the fish with the bishops hat and cross relevent to the OP?

Title is "Holy Carp." Fish is there to assure people it wasn't a spelling mistake.

 

[nerp]

Obamacare?

Dumbass.

 

[zinfamous]

COBRA is a fucking joke. In many cases, your actually paying 5x your previous carrier for essentially zero coverage, depending on your situation.

 

[zinfamous]

I paid $651.49 per month for Cobra back in 2008 for myself alone.

edit: How is the fish with the bishops hat and cross relevent to the OP?

really?

:hmm:

 

[jonks]

The ARRA (the stimulus bill) subsidizes 65 percent of COBRA for 18 months. I'm pay $160/month instead of over $500.

 

[spidey07]

COBRA is a fucking joke. In many cases, your actually paying 5x your previous carrier for essentially zero coverage, depending on your situation.

Umm, no.

You're paying to continue to participate in the plan your employer had but are paying full price the employer and you were previously paying. You are getting the exact same insurance as you used to have, it's the exact same.

If OP's is 2200 then he had one hell of an awesome insurance plan with his employer and the employer was paying a lot for it.

 

[mcmilljb]

You had better be REAL CAREFUL HERE!!!!

If you don't have group coverage for 30 days all kinds of shit starts getting messed up like your new insurance won't cover things and your costs can be much higher. NEVER LET YOUR GROUP COVERAGE LAPSE! You lose all sorts of protections if you do.

Go to eHealth insurance and pick/hop on a cheap GROUP plan. It must be a GROUP PLAN, that is a big distinction.

Actually HIPAA says you have 62 days if you had creditable coverage over the last 12 months.

There are limits and exclusions (of course).

http://www.insure.com/articles/healthinsurance/HIPAA.html
That page has some good information. Would be a good place to start if someone needed to learn some of the basics.

 

[spidey07]

Actually HIPAA says you have 62 days if you had creditable coverage over the last 12 months.

There are limits and exclusions (of course).

http://www.insure.com/articles/healthinsurance/HIPAA.html
That page has some good information. Would be a good place to start if someone needed to learn some of the basics.

Thanks for the correction. I thought it was 30 or 31. The important take away is to not let your group coverage lapse.

 

[rcpratt]

I'm living with only cheap catastrophic coverage right now while I wait for my benefits to kick in (September). First job though, so no COBRA...and I wouldn't have anyhow. Everything is simpler when you're young, single, and healthy.

 

[zinfamous]

Umm, no.

You're paying to continue to participate in the plan your employer had but are paying full price the employer and you were previously paying. You are getting the exact same insurance as you used to have, it's the exact same.

If OP's is 2200 then he had one hell of an awesome insurance plan with his employer and the employer was paying a lot for it.

nope. I mention specific situations. such is not always the case.

My sister-in-law is now on COBRA, due to my brother's death back in December--he had great care being a physician at Stanford--she was then starting up her business from home, raising their then 3 year-old son, so she hadn't been working for a few years at that time (Still isn't).

My brother had become an attending ~ 6 months prior to his sickness, and although many of the admins tried to help them out, couldn't get lifetime insurance that they often allow for attendings and their families (usually granted after long service).

Well, she's suddenly on COBRA, paying for her and her son ~$1500/month. She's had a few issues recently, but isn't going to get checked out b/c according to her new, re-written policy under COBRA, she'll essentially be dropped as they consider such a pre-existing condition. It's fucked up, and supposedly shouldn't be there, but it is.