COBRA insurance

[sleepyheads]

Hi, I'm an occasional lurker over here and was wondering if anyone has a bit of knowledge on COBRA insurance? 

My husband currently works for Verizon wireless, but is starting up a business with a friend and is planning on leaving Verizon this year...anywhere from sometime in the next month til October. The thing is, I'm pregnant and due in July, so we really need to keep our insurance. 

We were looking up Verizon's contributions last night, and our insurance website stated Verizon pays 10k a year for our insurance! We pay about $1300.

I know no one has any idea what Verizon actually pays, but could 10k really be accurate? If so, then if we got on cobra, we would have to cover that amount, right? This is sort of freaking me out.

Any info anyone has would be really helpful, thanks!

[Deleted]

$10k doesn't sound like that much to be honest. It's not rare to see COBRA rates at $1000+/month.

ETA:  I just checked the family rate that I pay Anthem for my employees and it's $977 per month.

[Redpoppy]

That's about what our family plan costs yearly for Blue Cross Blue Shield HMO. Work covers 90% and our 10% is around $1400 a year.

[kittycatlove]

That's actually probably a bit low, unfortunately. Plus I believe you would only be eligible for COBRA if your husband is let go. It's not available if you quit. Someone correct me if I'm wrong.

[Deleted]

Jan 25, 2013 14:28:14 GMT -5 kittycatlove said:

Plus I believe you would only be eligible for COBRA if your husband is let go. It's not available if you quit. Someone correct me if I'm wrong.

You are wrong.

www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

[sillygoosegirl]

Yes, that could really be right. I think our insurance is around $700/month, with DH's employer paying most of it, so that's in the same ballpark. You might be able to get a private plan for less, but I'm guessing not, since you are pregnant... That part of Obamacare hasn't kicked in yet.

[sleepyheads]

Wow, thanks for the input ladies. I just figured with such a huge company that they would get some sort of deal on insurance for their workers.

I was looking at a cobra website last night, and I thought it stated it would cover voluntary and involuntary leave from a job. I could be wrong though, or maybe things changed in 2013.

[Deleted]

Mine is over $7800/year just for me, so $10,000 for a family isn't outrageous and is possibly low, like others are saying.

[Deleted]

Jan 25, 2013 14:31:43 GMT -5 sleepyheads said:

Wow, thanks for the input ladies. I just figured with such a huge company that they would get some sort of deal on insurance for their workers.

I was looking at a cobra website last night, and I thought it stated it would cover voluntary and involuntary leave from a job. I could be wrong though, or maybe things changed in 2013.

In terms of insurance, it appears they did get quite a deal. 

Healthcare is expensive, yo.

[morningmania]

My employer pays around $1500 a month for our family plan(2 adults, 1 child). Verizon is more than likely getting some sort of discount on your insurance with a huge group plan, so your COBRA could actually be more expensive than what they are paying currently. You are not always allowed their discount.
You are allowed COBRA if he quits.

[sleepyheads]

Yea, expensive as hell. I knew we had great insurance at a great price, I just didn't realize the extent. I own my business and we have always used his insurance. we are both young and healthy, so we never paid much attention to it....we just started researching things now that I'm pregnant. I guess I'll tell him to buck up and hang on there as long as possible.

[everam01]

COBRA for me only would be $450 per month, and that is considered SUPER cheap for COBRA. My company is a state employer and that's why the coverage is cheap. $800 per month is not unusual for COBRA.

ETA: Me + kids would be $730. Me + hubby + kids would be $1050.

[Deleted]

Jan 25, 2013 14:39:51 GMT -5 morningmania said:

My employer pays around $1500 a month for our family plan(2 adults, 1 child). Verizon is more than likely getting some sort of discount on your insurance with a huge group plan, so your COBRA could actually be more expensive than what they are paying currently. You are not always allowed their discount.

Yes, it can be more expensive, but not for the reason you state-- they have to pass the Verizon discount along to her.


"Beneficiaries may be required to pay for COBRA coverage. The premium cannot exceed 102 percent of the cost to the plan for similarly situated individuals who have not incurred a qualifying event, including both the portion paid by employees and any portion paid by the employer before the qualifying event, plus 2 percent for administrative costs."

www.dol.gov/ebsa/faqs/faq-consumer-cobra.html


So its likely OP will have to pay the $10,000 Verizon pays, plus the $1,300 they already pay, plus an additional 2% for administrative costs.

PSA- not legal advice- just showing you what the government says on the internet

[ESF]

FYI you can elect COBRA, but your husband does not have to. That is, the employee doesn't have to continue his coverage for other people also on the plan to be able to continue their coverage.

For example, I used to be on my husband's work plan. He went back to school, and was eligible for the university plan. I did not have a job, so I elected COBRA through his former employer. In your case, this might be a good option for you, as your husband may be able to find his own insurance for a fraction of the rate that you could.

The DOL link that cosmos posted is really the best source of info on this subject though, and you should read through that.

[sleepyheads]

PP, that's good to know! We were looking at private plans last night too, which we will have to do eventually, but of course I can't get on them right now due to being pregnant.

So I'm guessing I could be on cobra and my husband could get private insurance. The baby and I can join onto my husbands insurance after the birth. Thanks for the idea!

[Chirp]

Ditto everything Cosmos said. She is correct.

[Deleted]

I, too, think that number is low, because my mom is a Verizon retiree (not wireless) and the value of her benefits for her and my dad is close to $20k/year - and my dad has Medicare as his primary insurance.

[gtkim]

I work for Verizon as well.  My commute is a killer but one of the reasons I don't leave is our benefits as a whole.  I think you really need to consider the full value of everything your husband would be leaving behind in the event he chooses to leave.  We have outstanding benefits, including healthcare.

[kittycatlove]

Jan 25, 2013 14:30:11 GMT -5 @iheartcosmos said:

Jan 25, 2013 14:28:14 GMT -5 kittycatlove said:

Plus I believe you would only be eligible for COBRA if your husband is let go. It's not available if you quit. Someone correct me if I'm wrong.

You are wrong.

www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

Thank you for that, it's good to know.  I've never been offered COBRA when I've quit a job...hmm.

[sleepyheads]

Jan 25, 2013 15:11:01 GMT -5 gtkim said:

I work for Verizon as well.  My commute is a killer but one of the reasons I don't leave is our benefits as a whole.  I think you really need to consider the full value of everything your husband would be leaving behind in the event he chooses to leave.  We have outstanding benefits, including healthcare.

This is true, we will be leaving behind great benefits. He's been they're many years and has really hated the job for over a year, but only stays because of the benefits (commute is about to suck, as he's transferring in a week to a store that 25 miles farther away,
 and the pay isn't that great). 

And it does make it a bit more difficult since I'm self employed, but he'll be happier at this new business, even if our insurance is going to go up. It'll even out, since he'll make substantially more at this new business. 

[midnightmare81]

When H gets out of the military, our Cobra through TriCare will be almost $1k a month... So you seem to be actually getting off on the cheaper side!

[definitelyO]

for our most expensive FAMILY coverage plan it costs $1300/mo the company pays $893 and the EE pays $425 (34%).
(annual = $15,600) - PPO with $20 copays
our least expensive plan is a HDHP for EE only and annual total premium = $4000 - EE pays 19% of that

So yes - if you were to elect cobra and continue family coverage you would pay the entire $1300/mo plus 2%.

[Deleted]

Jan 25, 2013 15:00:50 GMT -5 sleepyheads said:

PP, that's good to know! We were looking at private plans last night too, which we will have to do eventually, but of course I can't get on them right now due to being pregnant.

So I'm guessing I could be on cobra and my husband could get private insurance. The baby and I can join onto my husbands insurance after the birth. Thanks for the idea!

You can absolutely do this.  When dh started his new job we were uninsured for one month before the new benefits kicked in. I had a baby during that month.  Instead of covering DH, myself, and all 3 kids we elected only to cover me and the new baby on the COBRA from DH's job.  It saved us some money and wasn't a big deal.  We just had to put the names and Soc. Sec. #s of the people that were being covered.

Also, If we had covered all of us for the year on COBRA it would have been $18000 for medical only and around $21000 for medical/dental/vision.

[audry80]

I worked for a large bank and when I left my cobra premium was quoted as 498 per month just for me so for a family plan I wouldn't be surprised if it was over $1000. Can your husband start up the business on the side while still working with benefits. My husband consults on the side and it brings in extra money while still having the benefits and guaranteed paycheck.

[sleepyheads]

PP, he can do the business for a few months on the side, that is our ideal plan. He wants too stay on until the baby is born and then we'll get private insurance. I think he just feels bad because his partner is going to be doing a lot more work in the meantime (they have to build a showroom, get contracts and bids, installation, etc. - partner will be doing this full time while H will only be able to put in an hour or two per day and then a full day on is days off).

We both agree he'll have to suck it up for a few months to save us $1000/month and just kick butt after the baby comes.

[sleepyheads]

I'll check into high risk for my state, I never considered that. Unfortunately, or fortunately, I make about 4x-5x more than my H. Even with only my income, we're not even close to medicaid eligible. We could afford cobra if we have to, I just want to save all we can with the baby coming (especially since I make the majority of our income and I'll be out of work several weeks making nothing when the baby comes).

[DefenseAgainstTheDarkArts22]

The PPs are right that you each have individual election rights so he can get a private plan and you can continue on his COBRA. You should be able to find the insurance cost split in either his handbook, SPD or open enrollment information. Most companies are between 90/10 - 60/40. If you find the split information you can calculate the cost. Again the max is 102% of the cost since the 2% is a processing fee (they don't have to charge this but can).

Also, anything that can be elected separately during open enrollment can also be elected separately when you enroll in COBRA coverage. So if you can choose if you want medical, dental, vision, etc when you elect originally you can drop dental and vision if you'd like. If they offer the coverage as a package you cannot drop them.