Cobra health insurance questions

[squeaky_penguin]

My mom is currently 61 years old and is planning on retiring. She will need to buy her own health insurance. I would like to know more about Cobra insurance. She should be able to continue with her current employer's insurance company, but will have to pay the full premium, correct? Once she retires, the insurance company should be contacting her to inquire if she would like the insurance or should we be contacting them before she leaves her job? And how long can she does the Cobra insurance last for?
Sorry for all the questions, just don't know much about this and want to get all the info.

TIA!

 

[StitchFanZ]

She should get some rates from private insurerers and then find out the cost of COBRA and compare the rates and coverage. When I left my last job, the COBRA rates were over $1200 per month for our family. It was an awesome all expenses paid coverage but we opted to go with a $250 month policy with no dental, no vision and a very high deductible.

 

[Pakey]

She will have to pay full premium unless the retirement is not of her choosing (then she could possibly be eligible for the employer subsidy which would reduce the amount she would have to pay).

The employer is required to notify her; she should not have to contact them. We send out our Cobra letters within 72 business hours of last day worked. The employee has 60 days to respond/elect continued coverage. From that date, payment must be made within 45 days and will need to be retroactive to date of insurance termination.

Common length of Cobra is 18 months. There are some exceptions that will be spelled out in the Cobra letter. Our coverage stops on the first of the month following the termination/separation (ie if employee leaves May 18th, Cobra coverage would have to start June 1).

Your mom should try to find out the amounts now to be prepared. Our employees are always so shocked to find out what the amount is.

 

[I Believe n Fairies]

She should look into individual coverage from an insurance provider. COBRA is extremely expensive since, as other stated, you are paying for the entire insurance premium.

When my dh changed jobs, we looked to our insurance company (Blue Cross Blue Shield) to see if there were other options than COBRA. They offered a service call Blue Link that is a bridge plan for insurance. MUCH cheaper than COBRA and, really, offered about the same benefits.

We actually are insured directly thru BCBS with Individual Blue. For us, a family of 4, it was much cheaper to insure our family with Individual Blue than thru my dh's employer. We have been extremely pleased. Be sure to do lots of coverage research for her. Our insurance is great, but for surgery and things like that, it can be expensive.

 

[Sweety_tweety]

She may be able to get the reduced COBRA rates if the Senate decides to pass a bill that would allow here to pay 35% for a specified period through the end of 2010.

Here is a link with more info and a template to e-mail your local politicians.

http://www.unemployedworkers.org/sites/unemployedworkers/index.php

Good luck!

 

[mistysue]

On a similar note- to hijack this thread for a moment- is there a standard length of time people keep insurance? So if you get laid off- do they have to keep you enrolled for X days or anything?

DH and I were thinking of another baby and he is on a three year contract. As a professor we know his contract would end in June 2011 and the new one wouldn't pick up until August or September... we want to be REALLY sure I'm not due the week after it is up or anything.

 

[mishasmom]

She may be able to get the reduced COBRA rates if the Senate decides to pass a bill that would allow here to pay 35% for a specified period through the end of 2010.

Here is a link with more info and a template to e-mail your local politicians.

http://www.unemployedworkers.org/sites/unemployedworkers/index.php

Good luck!

That is only for employees who have been laid off. People voluntarily quitting or retiring aren't eligible for the COBRA reduction.

 

[Arielle22]

Your mom's company will have 30 days to send her a Cobra letter.

The health insurance policy spells out whether the policy ends the last day of work or the last day of the month. Your mom's insurance would end on the applicable day and if she opts for Cobra the coverage would be reinstated on the same day with no lapse in coverage.

Your mom has 60 days to opt for coverage. The cost is the entire premium the health insurance company charges plus 2% for administrative costs.

Payment is due when your mom opts for coverage but there is a 45 day grace period.

For most qualified events Cobra lasts up to 18 months.

Many companies use a third party to administer Cobra since it is highly regulated. The health insurance company has nothing to due with Cobra. Your mom should speak with her HR dept and ask for details.

She would not be eligible for the ARRA subsidy (if it were extended) because she is voluntarily leaving her job.