COBRA is a law

Discussion in Life & Health Insurance started by MrsJones • Dec 3, 2014.

  1. MrsJones

    MrsJonesActive Member

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    You don't hear much about COBRA any more. Employers are required to offer this to employees once they've separated from the company. I'm curious to know if any one has 'ever' took for lack of a better word advantage of COBRA and how it turned out for them. I've read a little about it and to sum it up you would be paying the full cost of the health plan currently offered by the employer plus a 2% administration fee for a period of 18 months. Given that Obamacare is in the picture now I wonder what affect that will have on COBRA.
     
  2. pafjlh

    pafjlhActive Member

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    Yes, I know someone who had COBRA when they left their job. They had to pay almost eight hundred dollars a month for the health plan they were under. Yes, it was full coverage but still this was a large amount. As for the ACA helping to change this I don't mean to be a cynic here but so far I have seen very little of the ACA changing the way Insurance companie including the COBRA system do things. So, far it seems as if its bowing to the insurance companies and their practices. Something i don't think was actually intended when this program was implemented. But due to the changes before it was passed into law it now seems to be catering more to the Insuance companies. I can only hope this will change in time with the program.
     
  3. MrsJones

    MrsJonesActive Member

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    @ pafjlh. I agree with you pafjlh. Having to apply for it(marketplace insurance) myself I found that it is not much different than having an insurance policy through an employer. The premiums are much higher than that of a group insurance policy through companies. Also, the subsidy is only granted if your household income falls within the guidelines.

    Having an insurance card is only for the assurance of being treated that is basically how I see it. With the high deductible amounts you are responsible for 100% of all costs (co-pays, office visits and lab tests) until the deductible is met. Also the subsidy has to be reported as income which would put you into a higher tax bracket when time to file. That's another difference between COBRA and ACA healthcare. You can deduct your payments for COBRA when you file as a medical expense.

    COBRA falls basically along the same rules with the exception that you can continue with the coverage you had while employed but at a higher cost.
     
  4. Rosyrain

    RosyrainActive Member

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    Last time my fiance got a new job, he got a COBRA letter from his former job offering insurance at a jaw dropping expensive rate. We just the the letter away. I am not sure how it works with Obama care now, but it has to be better right?
     
  5. MrsJones

    MrsJonesActive Member

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    COBRA is basically a law that requires employers to offer the health insurance plan that the employee signed up for at the last open enrollment. With that being said, because of the separation to keep that same coverage it(premiums) would cost more plus the administration cost.

    Healthcare through the ACA (Affordable Care Act) is available though. Premiums could be better than that under COBRA but that depends on individual or family and deductible (out of pocket expenses) amount you are willing to pay. I did not find a plan without a reasonable deductible when I applied through Healthcare.gov.

    I believe that insurance coverage under the COBRA law is affordable to those who can afford to pay the high premiums. Whereas the ACA provides insurance with a credit to make it affordable for at least some kind of health insurance coverage - just expect to pay any where from 2500 to 6000 dollars to meet the deductibles annually.