Anyone ever elect COBRA health insurance coverage?

[Tina]

DH is planning to resign from his current job tomorrow and become a contractor with another company. He'll be self-employed. We are looking into health insurance options and wondered if anyone has any experience with COBRA? From what I'm reading, it sounds like we'd get the same coverage that we currently have, only we'd pay the full premium, rather than sharing the cost with an employer. We'd also get the same group rate his current employer also has. Is this correct? And it can last for 18 months?

 

[disneysteve]

Yes, with COBRA you continue your current coverage at your own expense. That way, you aren't left uninsured while between jobs.

 

[Bob Slydell]

With the exception of the 18 months (I don't know what the length of time you can have COBRA is offhand), what you said is true.

As to whether or not it's the right choice, it depends on your health situation. Here's a good site I found that might help you make your decision:

http://www.cobrainsurance.com/COBRA_Insurance_When_to_Keep.htm

 

[Sandy V.]

Yes, it can last for up to 18 months. When we used COBRA, we were sent a monthly invoice. Same coverage; we just paid the full premium.

 

[Chicago526]

From what I understand, paying under COBRA can cost you an arm and both legs. It's great for short term needs, but if you think you'll be w/out employer paid health coverage for a long period of time, you may do better shoping around for a private policy. Never hurts to look, anyway!

 

[jgmklmhem]

From my understanding you have to pay 102% of the total premium (yours and companies contribution). In my research you have 60days to activate it. So if you will be getting new coverage within that 60 days DO NOT activate COBRA unless it is needed. I lost my last job Oct 15 my new job's coverage didn't start until Dec 1. If I needed COBRA coverage during that time I would just go to the doctor and then activate COBRA and it would activate retro active to my last day of work. Since none of us needed coverage we never had to activate it. Also look at the cost mine was going to be about $1000 a month so if we had needed to just see the doctor for say an ear infection it would not have been worth it to activate the COBRA. Also if after saying gone to the doctor for the infection you needed surgery then you could activate COBRA and get the past doctor's visits covered. Again this is all within the first 60 days. If the gap will be more than 60 days then this would not apply.

All information was obtained from the COBRA "expert" at the HR department of the University of Utah.

 

[Tina]

Great link, Bob! These questions only confirmed our assumptions. We are both currently overweight (but working hard on losing it!) and feel that a new insurance policy that requires a physical may cause us problems. Also, we both have had some recent health issues that could cost us as well. If we can do COBRA for about a year, if could greatly increase our chances of getting a lower premium later on. Thanks everyone.

 

[ziggystardust]

Cobra for me was $400 + dental which I think was under $100 (it was few yrs ago). It was when I graduated college and was looking for a job. Everything basically stayed the same, except the cost. Which for an unemployed recent college grad- it was crazy expensive.

A co-worker was telling me that for the family plan through cobra it would run you like $1300 a month.

 

[chrissyk]

Unless you have preexisting conditions, you may be better off with a high-deductable health plan from a provider like BC/BS and an HSA (Healthcare Savings Account). There is a new book out called "The New Health Insurance Solution" that very effectively lays all of this out in an easy-to-understand way. It's worth a read in your situation, because it could save you lots of $$ and get you better coverage.

 

[OhMari]

We decided to go with COBRA when my husband got layed off. At first we didn't go with it and something came up and I found out that I was able to activate it also. Our first 3 months was $880 Oct-Dec. On Jan 1, 2004 we received a letter stating that they can charge us 125% of the premium that his old company was offered. Our premiums jumped to 1,000 and it April it rose again to $1200.

Luckily my husband found a job and we were able to get health ins. May 1, 2004. I really don't know how we paid that premium. I know I am still trying to dig ourselves out of credit card debt. During those 7 months nothing extreme happened. My 2 oldest went to the Dr. in January and I ended up paying 100% of the bill because it went to the deductible. We didn't gamble because in my family of 6, (anything is possible from broken bones to stitches).

When you get your new insurance in 1 year, the new insurance might put you on a timetable of 90 days for any pre-existing conditions. (meaning you can't claim anything that has been going on for 90 days-like you if you are getting chemo treatments, your new insurance will not start paying until 90 days are up, or not at all).

 

[BeNJeNWaFFLe]

I actually just ended my coverage with COBRA. Just for health insurance, no dental and no vision and no drug plan, it cost me close to $600 a month!!! I just graduated college and did not have a job yet, how in the world was I expected to pay that? You get the same coverage you had but you pay for everything. I believe you can be covered for however long your insurance allows it. Because some people here said 18 months and I am pretty sure I was told I can be covered under COBRA for 36 months.

I would suggest looking at other options. COBRA is very expensive and the people that I dealt with made it impossible to find out any information.

 

[Tina]

Hmmm... perhaps we should try to get some quotes as well. We don't have children, so it would just be the 2 of us.

 

[KLAIT]

My advice would be to check around for independent policies. You might be surprised at what is available...however, make sure you have no lapse in coverage....if you have a period where you do not have coverage, you may be subject to the Pre-existing condition clause that may really hurt you in the end.

That being said, it is 100% true that you have 60 days to elect COBRA coverage...if something happens that is more than the premium, you can go back and elect and pay the premiums owed and never have a lapse in coverage.

Basic COBRA is 18 months, but there "events" that can bump the coverage another 18 months, ect.

Would also like to add that if you currently do not have Blue Cross, they cannot require any health information....if, however, you currently have Blue Cross, they will not quote an individual policy if you are eligible for COBRA.

 

[Tina]

Klait, can you please elaborate on that Blue Cross part? We currently have an Aetna PPO. Awhile back we had looked at some online options and were considering our own Aetna PPO, but never completed the application process. We assumed it would require a physical at some point.

 

[yoopermom]

When I was laid off two years ago, I chose to COBRA due to the fact that I have a chronic preexisting condition that I knew would negate me getting most other insurances. I had BC/BS, so that was who I COBRAed with, then, when COBRA ran out, BC/BS gave me a "group deal" to switch to paying ourselves, without physical exam, etc, since we had continuous coverage with their company. COBRA had to be paid direct to my old employer, so good to keep on speaking terms with them! Horribly expensive, but worth it for savings once we switched to policy afterwards. Keep copies of ALL your paperwork and take notes on phone conversations I would advise.
Good luck!
Terri

 

[figment52]

COBRA is a law and is very specific.

It must be a continuation of the insurance at the time of separation with the plan sponsor. (You cannot just pick any policy out there and call it a COBRA policy) Under most circumstances it is available for the next 18 months but there are a few circumstances when it is available for 36 months (divorce, end stage renal failure are qualifying events that allow for longer coverage). It must be picked up within 60 days of the time the plan sponsor would remove you from the plan (qualifying event). The sponsor can charge you no more than 2% of the premuim for a handling fee and set a very strict due date for monthly payments, Failure to make payments reult in loss of coverage.

You will continue to pay your former employer monthly for the insurance. If they change their company sponsored plan, your insurance policy would change also. You are not dealing with the insurance company under COBRA but your former employer.

As for the comments regarding how expensive it is - it is the actual cost that the providor charges the plan sponsor (your employer) plus no more than two percent. It only seems expensive to you because you most likely have not been paying all of the premium prior to this, you just never realized how much the company was paying for you. I know when I send out COBRA letters the people are in shock to know just how much the company is paying for then and their famalies every month.

Depending one your medical needs and budget, it may be better to carry a major medical policy only by yourselves and forgo the coverage for things like annual physicals and benefits that you just aren't using. Only you know what you medical situation is and what you can afford not to insure.

 

[ZachnElli]

Would also like to add that if you currently do not have Blue Cross, they cannot require any health information....if, however, you currently have Blue Cross, they will not quote an individual policy if you are eligible for COBRA.

This must vary state to state because this is exactly what we just did. My dh lost his job in Nov. and we had group coverage with BC/BS. We called about COBRA and they quoted $787 a month. I had already looked up individual plans on their website and it's $235 a month for our family of 5. Called them and they said the same thing, they transfered our COBRA phone call to a local agent to sell us an individual plan.

 

[Tina]

My dh lost his job in Nov. and we had group coverage with BC/BS. We called about COBRA and they quoted $787 a month.

Who did you call to ask about COBRA? Your employer? or your existing insurance company (BCBS)? Or an underwriter?

 

[JVL1018]

From my understanding you have to pay 102% of the total premium (yours and companies contribution). In my research you have 60days to activate it. So if you will be getting new coverage within that 60 days DO NOT activate COBRA unless it is needed. I lost my last job Oct 15 my new job's coverage didn't start until Dec 1. If I needed COBRA coverage during that time I would just go to the doctor and then activate COBRA and it would activate retro active to my last day of work. Since none of us needed coverage we never had to activate it. Also look at the cost mine was going to be about $1000 a month so if we had needed to just see the doctor for say an ear infection it would not have been worth it to activate the COBRA. Also if after saying gone to the doctor for the infection you needed surgery then you could activate COBRA and get the past doctor's visits covered. Again this is all within the first 60 days. If the gap will be more than 60 days then this would not apply.

All information was obtained from the COBRA "expert" at the HR department of the University of Utah.

That's what we are doing now. Dh changed jobs in mid-November. His new insurance doesn't start until Jan 1st, but he has 60 days in which to accept or deny COBRA.
Since it will be about 45 days between insurances he is neither accepting nor denying yet and will deny in January as long as we all stay healthy(knock wood).
It would have been $1740 for COBRA for a month and a half.

 

[Bob Slydell]

Who did you call to ask about COBRA? Your employer? or your existing insurance company (BCBS)? Or an underwriter?

The employer is required to give a departing employee COBRA rates and info by law, IIRC.