Insurance cheaper than Cobra?

[simpsongal]

*poof* for folks' privacy

[Deleted]

Any wiggle room on a signing bonus that he could use to cover COBRA with the new job?

An individual policy might be cheaper if they drop down to a catastrophic type policy for those 2 months.

If they have regular monthly medical expenses, I'd pay the COBRA and honestly $900/mo, while not insignificant, is pretty good. When we've used COBRA our monthly premiums were $1200-$1500.

We've never incurred enough medical expenses/COBRA to take the federal medical deduction, but it has pushed us over the threshold for our state taxes, I think it's only 2 or 3% for state where I live.

[Deleted]

They're still in NJ, right?

[Deleted]

www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=3&cad=rja&ved=0CEoQFjAC&url=http%3A%2F%2Fwww.horizonblue.com%2Fbrokers%2Fforms%2Fhorizon-individual-health-benefit-plans-monthly-rates&ei=_88GUd11ka7QAaXCgMAM&usg=AFQjCNFrUphT2cIAP5HXjiym7nbldRICQg&bvm=bv.41524429,d.dmQ

See if that link works.

Even the EPO Plus, which is a shitty plan, is more than $900/mo if one of them is 55+
You wouldn't want the basic EPO

[simpsongal]

*poof*

[CloudBee]

I would definitely stay on COBRA with their history.

[Deleted]

I think they should pay the $900/mo for COBRA. If they can't afford it, can you help them out with the $1,800?

[Deleted]

I'm in NJ - they might be able to deduct Cobra for state tax purposes. The first time we used it we hit the cap and this year we might too (MH changed jobs last Jan.).

[Deleted]

You can elect COBRA up to 63 days retroactively. Would it be possible for them to not elect it right away, and have them elect it should something happen in those 2 months?

[simpsongal]

*poof*

[Deleted]

Really, they can't retire until Medicare kicks in for the younger of the two of them, although if your dad became Medicare eligible at 65 and your mom wasn't 65 yet, she could go on an individual plan or go on COBRA.

[Deleted]

Simpson, I'm curious what they said at the retirement seminar re: social security, in light of that article that was posted here about maximizing benefits.
My parents are considering employing one of the strategies, as my mom is the younger of the two and also was the higher earner. She is currently 62 and can take SS, suspend it til 66 (67?) and my dad will be able to collect more $$ as a result under her working record.

[Susie]

Jan 28, 2013 14:36:33 GMT -5 @mrsspunky said:

You can elect COBRA up to 63 days retroactively. Would it be possible for them to not elect it right away, and have them elect it should something happen in those 2 months?

That's what I was going to suggest.

[simpsongal]

Jan 28, 2013 14:56:07 GMT -5 @mrsspunky said:

Really, they can't retire until Medicare kicks in for the younger of the two of them, although if your dad became Medicare eligible at 65 and your mom wasn't 65 yet, she could go on an individual plan or go on COBRA.

My mom doesn't really work so it's all contingent on dad's job (he's a little younger).  So they didn't get too into the 'when and how much' re: social security.  The folks at the seminar emphasized that folks should wait as long as they can to begin collecting (67 is best).  But my dad has a very physically demanding job and there's no way he can work that long.  A good portion of his friends go out on disability - they don't even make it to retirement.

[simpsongal]

Maybe there's something to election - looks like it hinges on the date of eligibility. I'll ask mom until what date she can elect coverage:

Changing your mind
Your COBRA coverage will be retroactive to the date that you lost your benefits (as long as you pay the premium). During the election period, you might initially decide not to take COBRA, which means you waive your right to coverage. However, as long as the election period hasn't expired, you can change your mind and revoke your waiver.

Even if you enroll in COBRA on the last day you are eligible, your coverage is retroactive to the date you lost your job, provided you pay all the retroactive premiums.

If you waive your right to COBRA but then incur medical bills during the election period, you can change your mind and elect COBRA, and your plan will cover those bills.

Conversely, if you elect COBRA, you can cancel it at any time. You don't have to use it for your full eligibility period.

[ESF]

Jan 28, 2013 14:46:58 GMT -5 simpsongal said:

I'd be nervous about the retroactive election. I figured Cobra was the best option, just wanted to make sure. Mom was considering going two months without but her friend and I easily talked her out it.

The EBSA dept of the DOL has a website with all sorts of easy to understand info on this.  Obviously you want to make sure you are dead certain on when your time to elect retroactively runs out and when your new plan begins, but the federal regulations for retroactive election and short gaps in coverage are quite clear.  I'd read through that stuff.

[simpsongal]

Will do, ESF. I'll definitely do some research. They don't lose coverage until March, so I have a bit of time to get the details and pin it down.