Cobra: paying employer's part

[FLMommy]

What is the name of your state? FL

Question 1: We pay about 200 a month in premiums for our family of 3, through my husband's employer's group plan. We understand that if we elect COBRA, we'd also have to pay the portion the employer pays. HR informed my husband, that should he be laid off (they've been doing that a lot lately), the MONTHLY premium total would be over $1600. Does it sound right that his company is paying $1400 (seems so much to me) per month in healthins premiums for us???

Question 2: Would non-major medical insurance (say insurance that only pays a max. of 200 toward a new diagnosis), count as a valid and credible insurance? Reason asking: Say my husband starts a new job in 6 months, new comp provides group, he gets laid off tomorrow, and during those 6 months he works a temp job through aan agency that only provides the above insurance - I want to know if those 6 months count as credit, and the waiting period for pre-existing conditions is shortened once enrolled into new co's group program.

Question 3: Are non group, individual (e: BCBS) health insurance companies bound by law to accept pre-existing conditions (that require continous treatment/medical advice) after a certain period of time?

Thanks.

 

[moburkes]

Yes, that sounds right. Health insurance is expensive.

#2. I've never heard of that type of insurance. You would be better served by buying 3 individual policies, with higher deductibles, than that.

#3. Yes, if you've been continuously insured for 18 months. But, then can flat out deny to insure you.

 

[cbg]

$1600 is easily within range for family coverage. I have no trouble at all believing those rates. I will agree that it is on the high side of normal, but it's not even remotely outside the realm of possibility.

 

[TinkerBelleLuvr]

Does it cover health/dental/vision? If so, very credible.

 

[TIMMAAYY]

Many group plans are in that price range for family coverage. Welcome to reality.

If you can qualify for individual insurance, give it a shot. Get a high deductible plan. Depending on the number of kids you have you could easily cover your family for 2 to 3 hundred a month. Don't "match" the plan benefits you had with group coverage... that's defeating the purpose of saving the money for when you need it, and you'll be paying for things you won't ever use.

If your employer would set up a Section 105 plan, he could offer you a tax free benefit to pay for your individual premium ( if you end up with a new employer, or your husband, rather ). Plus. individual coverage is portable. You own it. No more worries with COBRA.

 

[TIMMAAYY]

I hear ya. Most employers are not aware that they can take advantage of the law or how to do so... and they get bad advice from their agents. I've sat in front of many CPA's who have no idea about it either. They SAY they do, but when it comes down to actually setting it up or knowing how to put a plan together, they just shrug it off and say something brilliant like "I talked to the agent and he said it was a bad idea."

 

[TinkerBelleLuvr]

Depending on what happens with your income, you may qualify for state health insurance for the kids. That would then have only the two of you having to get health insurance.

 

[FLMommy]

Thanks everyone, I really had no clue. Still think it's ridiculous 1600 is paid every month to cover family of 3 and it's cosidered normal. It seems to me like COBRA really doesn't mean anything, and it's purpose is completely lost, really. Sad.

We're personally looking at 2 job options, one is a transfer, the other one starts in April. We don't want to be without insurance for 6 months, perhaps for ourselves, but our daughter has hydrocephalus, and it would mean taking a hug risk for 6 months (and consequently another 12 months of preex. condition waiting period once enrolled in another group).

Thanks for your help.

 

[moburkes]

You have no idea what you're talking about.

The purpose of COBRA is so that, after you quit your job or lose your job, or get divorced, etc that you STILL HAVE HEALTH INSURANCE. Period.


I have no idea what you mean when you say that its purpose is really lost.

 

[TinkerBelleLuvr]

Thanks everyone, I really had no clue. Still think it's ridiculous 1600 is paid every month to cover family of 3 and it's cosidered normal. It seems to me like COBRA really doesn't mean anything, and it's purpose is completely lost, really. Sad.

We're personally looking at 2 job options, one is a transfer, the other one starts in April. We don't want to be without insurance for 6 months, perhaps for ourselves, but our daughter has hydrocephalus, and it would mean taking a hug risk for 6 months (and consequently another 12 months of preex. condition waiting period once enrolled in another group).

Thanks for your help.

Have you contacted Florida KidCare at 888-540-5437. Coverage is excellent and $20/month.

 

[ecmst12]

Good point, many states have coverage programs for seriously ill children; these programs can help with out of pocket expenses even if the child is covered under other insurance.

Does your husband work for a small business? $1600 is about what my dad pays for family coverage for his family, he is self employed with only one employee so he can get a section 125 group plan but doesn't qualify for any large group discounts like a big company might.

 

[FLMommy]

moburkes: there is no need to respond like that, really. I understand the purpose of COBRA - among other things, main things, to provide contineous healthare for 18 months after a person gets laid off. But unless this person in question has quite the savings (allocated to pay 1600 in medical insurance) or a budget with quite the surplus (which from latest statistics doesn't seem like the average middle income american family has), it is ridiculous to assume that that average family can come up with an aditional 1400 plus a month to cover their health insurance. It would be more economical for them to switch to individual insurance, or federal insurance. TO ME that means there really is no purpose in the COBRA law as it applies to the average middle income family. It's not working for my family, or many others I know.

Ginny: Thanks for the number, I will check into it. I'll have to do some research as to whether they cover preexisiting conditons in children and if there is an income limit.

ECMST: His company is midsize, probably a few hundred workers, spread out over at least 10 different sites/states within the US.

Another q: HR told him they pay the claims directly - does that sound right? The EAB we get always have the insurance co's letterhead, the no we call with q's is not the company's, etc. It almost sounds scary to know they are directly responsible for paying claims, because then 'of course' the first people you lay off would be people that suck up an enormous amount of their overall medical budget.

I really don't know that much about all this, so though my questions might sound 'dumb' to you, I'd still appreciate your input.

 

[moburkes]

FLmommy. My COBRA covergae is $59 more than what I currently pay. WHY? Because, at my company, the employee pays a greater portion than the company.

You say that you don't like the premiums, and, neither do I. But, guess what? The employer has been paying the great majority of that premium for you, in order to keep your coverages low.

You're assuming the EVERYONE has $1600 premiums. We don't. Like I said, I pay the majority of my premiums, so an extra $59 isn't much more than what I'm already paying.

And, by the way, your statement was that "it doesn't mean anything". What is it supposed to mean?

And, why do you think that the people at work know how much you spend for your medical conditions, unless you have made them aware of your medical conditions? I haven't been laid off, and my daughter's medical bills are HUGE. We've had hysterectomies, diabetes, organ transplants, etc, and all of those people are still working.

I told you in the very first response to your post to switch to individual. Many of us, because of our medical conditions (like my daughter) don't have the option to switch to individual plans. Many of us (like myself) appreciate COBRA because, in the event that I am out of a job, my daughter can get health care.

So, while your situation isn't ideal, not everyone has the same attitdue or outlook or cynical view.

And, oh, by the way, I had to stop paying my house payment in order to pay for our health insurance, because it was more important to me to have health care for my child. And MY situation had NOTHING to do with COBRA. And, YES, I am considered middle class based on my income. And, no, I don't feel sorry for myself.

 

[FLMommy]

Thank for your input Moburkes.

Ginnyj: Just wanted to thank you again for the no. I looked up their website, and called the no. It's a total 'lifesaver' no matter what happens in our situation. I had been doing research (hearing FL had some great healthcare options for kids) but for some reason - blame it on bad research - had never stumbled upon this.