Budget Buster = COBRA

[JoiseyMom]

Explain to me how the heck health insurance can cost more then my monthly mortgage!

It is insane!

 

[rflorek]

I can tell you that at the small office I work in, the company's annual cost for a not-top-of-the-line family health plan is about $25,000 - and that was one of the more inexpensive small business options for NJ without sacrificing a ton of coverage. It really is insane

 

[Cheshire Figment]

For COBRA coverage, since no longer employed by the fomer employer there is no employer share of the insurance.

So your payment is (100% of the employer share) + (100% of the employee share) + (2% service/handling charge).

As an example, for an individual, if the employer had been paying 75% of the premium and the total monthly premium had been $600, then where the employee had been paying $150 now the employee would be responsible for $450 + $150 +12 = $612.

 

[shortbun]

Mine is ridiculously high but our coverage is excellent so I'm paying it.

 

[Hwyprincess]

There are things to remember with cobra that might save you (if you haven't payed them yet). You have so many day to say whether you want it or not (sorry I forgot specifics), then you have so many days to pay them the first payment. What it equals is I think more than 3 months of coverage without having to pay. Then if you didn't use it and have new coverage by then you just walk away and they don't collect but if you had some emergency and needed it most likely the back payments would be cheaper than the hospital bill.

There are a lot of little loopholes that not many people know with cobra. Read all fine prints to get the best bang for your buck.

 

[JoiseyMom]

For COBRA coverage, since no longer employed by the fomer employer there is no employer share of the insurance.

So your payment is (100% of the employer share) + (100% of the employee share) + (2% service/handling charge).

As an example, for an individual, if the employer had been paying 75% of the premium and the total monthly premium had been $600, then where the employee had been paying $150 now the employee would be responsible for $450 + $150 +12 = $612.

Believe me, I understand how it is. We have been on COBRA many times over the past 10 years, but it is have never been this much. And I am looking at private options, but it is all insane.

My point being that health insurance should not be more then a persons rent or mortgage. I am sure for some in other parts of the country my COBRA amount is the cost of a vacation and many times their rent or mortgage. There is something fundamentally wrong with that. Health insurance for a family of 4 should not be $1600.00!! And we are not talking a great plan where everything is covered, etc...

 

[JoiseyMom]

There are things to remember with cobra that might save you (if you haven't payed them yet). You have so many day to say whether you want it or not (sorry I forgot specifics), then you have so many days to pay them the first payment. What it equals is I think more than 3 months of coverage without having to pay. Then if you didn't use it and have new coverage by then you just walk away and they don't collect but if you had some emergency and needed it most likely the back payments would be cheaper than the hospital bill.

There are a lot of little loopholes that not many people know with cobra. Read all fine prints to get the best bang for your buck.

Thanks, I know. I am actually thinking of looking into just a plan that covers hospitalizations and emergencies at this point. If my kid is sick, it would cost me 100 for an office visit, tops 120. Meds also, most antibiotics are free at Target. My main concern would be the unthinkable stuff.

 

[kathie859]

Explain to me how the heck health insurance can cost more then my monthly mortgage!

It is insane!

I took early retirement in January. I could have paid for COBRA for as long as it lasts (several months--seems like at least year and a half--I sort of zoned out when I was told the premium)until I would be eligible for Medicare (several years from now). I called my insurance agent and he found decent coverage for half of what COBRA would have been. The coverage is good but I have a $2500 deductible before 100% coverage kicks in. The annual difference in premiums is $3600 LESS than COBRA so I think it's a decent risk level.

You may want to research your options.

 

[bumbershoot]

My point being that health insurance should not be more then a persons rent or mortgage.

Well...an insurance company is basically a gambler. They take money and gamble that you will NOT get devastatingly ill, that you will NOT be in a horrific car accident, etc etc. But if something awful happens, they have to have the funds to pay the people you go to see, to the extent that your coverage demands they pay.

They can't charge us $10 and then someday maybe pay out a million dollars for a transplant. They also have to pay for their buildings, salaries (even the customer service ones, leaving aside the CEO type salaries), electricity, phone bills, etc. They have to cover their expenses AND have the cash to pay out if they lose their gamble on you.

 

[Shelly F - Ohio]

I have never done cobra because of the cost rather I googled and found insurance coverage on my own. Here in Ohio Medical Mutual offered individual coverage for a 1/4 of the price of cobra. Its was great coverage same as what my employer had.

Here is their link

https://www.supermedone.com/

My inlaws are currently on it and love it. They were planning to spend $1200 for cobra when I told them about this. Now they pay $290 for two people

 

[JoiseyMom]

I have never done cobra because of the cost rather I googled and found insurance coverage on my own. Here in Ohio Medical Mutual offered individual coverage for a 1/4 of the price of cobra. Its was great coverage same as what my employer had.

Here is their link

https://www.supermedone.com/

My inlaws are currently on it and love it. They were planning to spend $1200 for cobra when I told them about this. Now they pay $290 for two people

The lovely state of NJ doesn't have that option. I am researching. The state website has what options that are available...and where a few might be cheaper then COBRA, the coverage is really bad and not worth the cost. I will cover all my options though.

 

[JoiseyMom]

I have never done cobra because of the cost rather I googled and found insurance coverage on my own. Here in Ohio Medical Mutual offered individual coverage for a 1/4 of the price of cobra. Its was great coverage same as what my employer had.

Here is their link

https://www.supermedone.com/

My inlaws are currently on it and love it. They were planning to spend $1200 for cobra when I told them about this. Now they pay $290 for two people

Thanks, but I don't live in Ohio.

 

[JoiseyMom]

Well...an insurance company is basically a gambler. They take money and gamble that you will NOT get devastatingly ill, that you will NOT be in a horrific car accident, etc etc. But if something awful happens, they have to have the funds to pay the people you go to see, to the extent that your coverage demands they pay.

They can't charge us $10 and then someday maybe pay out a million dollars for a transplant. They also have to pay for their buildings, salaries (even the customer service ones, leaving aside the CEO type salaries), electricity, phone bills, etc. They have to cover their expenses AND have the cash to pay out if they lose their gamble on you.

Thanks, but I didn't ask for an insurance lesson. I have been around long enough to know what it is and how it works. It is also disgusting that health insurance should cost 1600.00 per month for a family of four. And unfortunately when most people need for these companies to kick in, they deny their claims and fight their claims. It really can be a sleazy business.

 

[Tink-aholic]

Thanks, but I didn't ask for an insurance lesson. I have been around long enough to know what it is and how it works. It is also disgusting that health insurance should cost 1600.00 per month for a family of four. And unfortunately when most people need for these companies to kick in, they deny their claims and fight their claims. It really can be a sleazy business.

Whoa...I think that Bumbershoot was just being kind and trying to explain because it seemed like you didn't understand. I think this response was uncalled for.

Did you know that MANY families pay what you are paying as their regular premium every month? Some pay much, much more.

While I don't disagree that insurance companies can be "sleazy", it sounds like you have been luckier than some with your past premiums. Here's hoping that you are able to find that same kind of coverage again soon.

 

[BSil]

I pay $12,000/yr as my portion. Supposedly my employer is paying 65%. For that kind of money I should be paying next to nothing for copays and RX, but that is hardly the case. $20 for doctor visit, $20+ for RX, and $150 if I need the ER. Since the Obamacare we had deductibles added to the tune of $2000/yr. I know what are saying OP. It is nonsense that costs are this high. Let companies compete across state borders, and see what happens to premiums. I live in MA, and for the longest time we could only get certain companies for auto insurance. Now I can buy from basically anyone, and premiums have dropped significantly. No easy answer I'm sure, but boy wouldn't it be great if we could come up with some way to save the hard working middle class a couple bucks on health insurance (or COBRA should they lose their job). Nah, we should probably just keep funding healthcare for all those who could work, but have figured out that life is pretty good, when things are free.

 

[JoiseyMom]

I pay $12,000/yr as my portion. Supposedly my employer is paying 65%. For that kind of money I should be paying next to nothing for copays and RX, but that is hardly the case. $20 for doctor visit, $20+ for RX, and $150 if I need the ER. Since the Obamacare we had deductibles added to the tune of $2000/yr. I know what are saying OP. It is nonsense that costs are this high. Let companies compete across state borders, and see what happens to premiums. I live in MA, and for the longest time we could only get certain companies for auto insurance. Now I can buy from basically anyone, and premiums have dropped significantly. No easy answer I'm sure, but boy wouldn't it be great if we could come up with some way to save the hard working middle class a couple bucks on health insurance (or COBRA should they lose their job). Nah, we should probably just keep funding healthcare for all those who could work, but have figured out that life is pretty good, when things are free.

I remember the days of 80/20, no copays, just pay as you go. But insurance got nuts, and docs charged more and got less and the insurance companies took over and it is now insane. The docs get hardly anything, and the insurance companies are raking in money hand over fist. There has to be a better way.

 

[disfan07]

It's because the insurance companies care more about lining their own pockets than actually helping people.

Once the premium caps go into place hopefully it won't be as bad.

Last year, across the country a family of 4 was paying anywhere between $12,00-$25,000/year for private insurance. Those premiums are supposed to be capped soon.

It also doesn't help that many insurance companies are only using about 40-50% of the premiums paid and pocketing the rest. That is going to change with the new 80% min. so they premiums should be in line with that soon hopefully.

Blue Cross/Blue Shield got shot down by a California review board a few months ago because they wanted to hike premiums again and it was found that the premiums were not necessary to cover costs because they were not using an adequate amount from premiums to cover bills. If they used an acceptable amount from the premiums they were already getting, they had more than enough to cover costs.

My moms cousin used to be a lawyer for a big insurance company. She finally quit 2 years ago because of how sleezy insurance companies have gotten (she was siwth them when they first started and when they weren't so greedy). She said you cannot even imagine what really goes on behind closed doors when deciding premiums and coverage and denying treatments. She said its absolutely disgusting.

 

[satorifound]

I had an insurance that was 100% no co-pay or deductible. That was going to cost $1100 for my family of 4 with Cobra.... It was Blue Cross/Blue Shield of Illinois...

I miss the good old days. LOL

 

[junglejoy]

My neighbor works for a non-profit health insurance company so they aren't allowed to show any profit at the end of the year. He brags that as an employee - not an executive but not hourly either - his bonus is around 3x's his annual salary which I know is over 150K. He makes around 500k a year? I wonder what those executives bring home?

Health insurance companies are evil.

I think pharmaceutical companies are even more evil and they just add to the ridiculous costs that insurance companies charge.

 

[JoiseyMom]

It's because the insurance companies care more about lining their own pockets than actually helping people.

Once the premium caps go into place hopefully it won't be as bad.

Last year, across the country a family of 4 was paying anywhere between $12,00-$25,000/year for private insurance. Those premiums are supposed to be capped soon.

It also doesn't help that many insurance companies are only using about 40-50% of the premiums paid and pocketing the rest. That is going to change with the new 80% min. so they premiums should be in line with that soon hopefully.

Blue Cross/Blue Shield got shot down by a California review board a few months ago because they wanted to hike premiums again and it was found that the premiums were not necessary to cover costs because they were not using an adequate amount from premiums to cover bills. If they used an acceptable amount from the premiums they were already getting, they had more than enough to cover costs.

My moms cousin used to be a lawyer for a big insurance company. She finally quit 2 years ago because of how sleezy insurance companies have gotten (she was siwth them when they first started and when they weren't so greedy). She said you cannot even imagine what really goes on behind closed doors when deciding premiums and coverage and denying treatments. She said its absolutely disgusting.

My neighbor works for a non-profit health insurance company so they aren't allowed to show any profit at the end of the year. He brags that as an employee - not an executive but not hourly either - his bonus is around 3x's his annual salary which I know is over 150K. He makes around 500k a year? I wonder what those executives bring home?

Health insurance companies are evil.

I think pharmaceutical companies are even more evil and they just add to the ridiculous costs that insurance companies charge.

I agree with you both. The bonuses and the gouging of the masses need to stop. It is hurting everyone.