RTURNSONLY
Well-Known Member
Anyone here ever had any dealings with the infamous COBRA insurance @ Express? Any idea how much approximately it costs per month?
(PS. I heard it's ridiculous expensive)
(PS. I heard it's ridiculous expensive)
COBRA
- Thread starter RTURNSONLY
- Start date
RTURNSONLY
Well-Known Member
OUCHHH. I should begin looking into private insurance quotes, COBRA sounds like highway robbery//Appreciate the info.
Ricochet1a
Well-Known Member
When I got out in 2010, COBRA rates for former Express employees were quoted around $800-900 per month for a family.
I was able to find a much cheaper rate by going directly to an insurance provider and setting up a policy that way. It was short term catastrophic coverage only, but it fulfilled the need.
The only real advantage COBRA offers, is for those with some form of pre-existing condition for which they are incurring regular medical expenses - people in this category would find it nearly impossible to find insurance on their own that would be cheaper than COBRA (no one in my family had a pre-existing condition).
Given the changes taking place under Obamacare, I'd have to imagine that the costs of obtaining insurance on your own would have only INCREASED in the past couple of years. If I was getting out now, I'd imagine that I would've taken the COBRA option until I was covered under my new group employment plan.
I was able to find a much cheaper rate by going directly to an insurance provider and setting up a policy that way. It was short term catastrophic coverage only, but it fulfilled the need.
The only real advantage COBRA offers, is for those with some form of pre-existing condition for which they are incurring regular medical expenses - people in this category would find it nearly impossible to find insurance on their own that would be cheaper than COBRA (no one in my family had a pre-existing condition).
Given the changes taking place under Obamacare, I'd have to imagine that the costs of obtaining insurance on your own would have only INCREASED in the past couple of years. If I was getting out now, I'd imagine that I would've taken the COBRA option until I was covered under my new group employment plan.
RTURNSONLY
Well-Known Member
Thanks so much for the information Rico, Ill definitely start doing lost of reseach and phones calls soon. Of course, I make sure I'll be sitting down.
Mr. 7
The monkey on the left.
The only reason you would pay for cobra is if you have re-curring med. expenses ("pre-existing") or, someone in your family does.
Also, if you have any lapse in health care coverage, with a "pre-existing condition" and don't fill that gap with cobra, you're screwed.
Basically, if you or, anyone under your health care has any sort of on-going medical need, you better have cobra until you get to your next health care coverage plan.
edit.
I'm not in H.R. or, health insurance. I only know this due to a family member going through this right now.
Also, if you have any lapse in health care coverage, with a "pre-existing condition" and don't fill that gap with cobra, you're screwed.
Basically, if you or, anyone under your health care has any sort of on-going medical need, you better have cobra until you get to your next health care coverage plan.
edit.
I'm not in H.R. or, health insurance. I only know this due to a family member going through this right now.
I know it's not practical for most, but in retirement the best option is to self insure by moving overseas. $15-$25 doctor visits, $100 a night hospital rooms, cheap prices on meds, most of which doesn't require a prescription. At the very least there are a number of towns on the border that are safe and popular for medical and dental care. One that's very popular is Los Algodones, a small town just outside of Yuma, AZ. You can have excellent dental work done there for 25% of what it costs in the States. Literally many dozens of dentists there, and doctors too. No cartel activity either.
FedExRookie
Well-Known Member
Under the Affordable Care Act, you can no longer (or starting in 2014) be denied for pre-existing conditions
Private Insurance will be just as expensive and the benefits are inferior with high deductibles. I pay $292 a month for the most basic individual health plan thru the state of Massachusetts (Commonwealth Choice). A decent health plan equivalent to employer sponsored health coverage would be over $650 a month just for myself, I am in my 30's no health issues.
That is if you can afford to pay for the insurance. For many, the penalty will be cheaper. $45,000 is the cutoff for a single person to receive subsidies which is ridiculously low. The OP should take the Cobra then do whatever it takes to get hired at a place that has employer sponsored health coverage, most major companies still pay 80% of the group premium. Obamacare aka the sham ACA will be nothing short of an unmitigated disaster.
That right there is a BIG plus!!!
But you can sure be charged out the wazoo for insurance. Kathleen Sebilius(spelling?), the Secretary of Health, just said yesterday that she and the rest of the administration underestimated the complexity of overhauling the health system. Thousands upon thousands of new regs, 33 states saying they can't afford to start insurance exchanges, companies already forcing people into part-time status to avoid paying much higher premiums that they can't afford, it's already a mess and it won't start until 2014. Obama said it was revenue neutral and he's now seeking something like $800 billion in new taxes to pay for everything. We are screwed and putting a smiley face on it won't change that. Later this week the administration is supposed to announce changes in Social Security that will affect future increases in monthly payments as well as means testing for Medicare. And Obama just said that $205k a year is the max needed for retirement and anything in IRA's that would generate more than that can be taken by the government. Cyprus anyone?
RTURNSONLY
Well-Known Member
What percentage of the total monthly insurance cost of the CIGNA Premier plan does the Company (Express) actually pays? I'm talking for employee-only, not the family plan.
Ricochet1a
Well-Known Member
That is a tricky question, since Express is self-insured (CIGNA administers Express health insurance, Express pays the actual bills). I think Anthem still administers in some states too.
It also depends on the age of the insured.
Health insurance on the open market is priced primarily according to the insured's age, then by any factors which increase the potential utilization of insurance - smoking being the primary factor. The younger, the lower the annual premium for a policy. If one smokes or uses smokeless tobacco - you DON'T want to try to get insurance on the open market.
Going off of memory, the breakdown for a 'typical' health insurance policy for an individual would cost ABOUT the following per age cohort (this is full coverage insurance, prescription meds included as a benefit):
20-29: $1,000/yr
30-39: $2,000/yr
40-49: $4,500/yr
50-59: $7,500/yr
60-64: about $10,000/yr
Now.... Express charges a flat rate for an employee's health insurance. It has been awhile since I was both 'in' and since I looked at the actual premium amounts (I'm going off of 2012 recollections when there was a discussion about the rate increases that year), but I remember Express' annual premium for the top tier of insurance being just under $1000/yr (employee only).
So... for an employee in their 20's (a very significant number of wage employees), they foot the COMPLETE cost of their health insurance (compared to if they obtained insurance on the open market). Even for a family plan, I think Express charges about $3,000 a year in premiums (someone that is currently covered under top tier family plan, put up your weekly premium from your pay stub). Take whatever that figure that someone else will put up and multiply it by 48 to get the annual cost. By looking at the figures above for obtaining insurance on one's own, you'll see that Express doesn't really pick up ANY of the cost of insurance for those in their 20's.
For the older employees, the story changes. Employees in their 30's get Express to pick up about $1000 of the annual cost of their insurance (about $3,000 or so if they have a family). Employees in their 40's get Express to pick up about $3,500 for an employee only or about $10,000 for family coverage (assuming the spouse is in their 40's too). Employees in their 50s and 60s really win under the Express plan (hardly any hourly employees in this bracket). Express picks up about $6,500 a year in 'cost' for an individual, and a whopping $13,000 if that employee covers their spouse (assuming 50's) and any family members.
This is one of those things that most hourly employees don't have a clue about, and why Express should offer their top tier of insurance (for employee only option), at absolutely NO COST. If you were organized (cough, cough), I'd bet dollars to doughnuts that insurance for employee only option would cost ZERO to the employee - as part of the negotiated contract (labor contract negotiators know about this stuff).
The apologists for Express will state that the employees in their 20's are much more likely to use the $3000 annual tuition reimbursement benefit (a bit of truth to that), but that in NO WAY compensates for the low wages these employees are receiving compared to their 'topped out' counterparts. The wage employees in their 20's are getting screwed - no other way to put it.
