Hello abbacus,
You're probably already aware that if you leave your job, you are
eligible for up to eighteen months of COBRA insurance coverage under
your current employer's group insurance plan. (This is true whether
you leave or are terminated for any reason other than "gross
misconduct", such as embezzling.) The catch, of course, is that not
only will you have to pay your current premium, you'll also have to
pick up what your employer currently pays into the plan.
Determining the exact dollar amount of continuing medical insurance
coverage under your current plan is largely dependent upon the portion
of the premium paid by your employer:
"PAYING FOR COBRA COVERAGE
Beneficiaries may be required to pay the entire premium for coverage.
It cannot exceed 102 percent of the cost to the plan for similarly
situated individuals who have not incurred a qualifying event.
Premiums reflect the total cost of group health coverage, including
both the portion paid by employees and any portion paid by the
employer before the qualifying event, plus two percent for
administrative costs."
COBRA Insurance Law Information
http://www.cobrainsurance.net/COBRA_Law.htm#PAYING%20FOR%20COBRA
Employer contributions vary wildly - some (very few) companies pay
100% of the insurance premium, but contributions typically fall in the
25% to 50% range.
By way of example, if your employer pays 50% of the premium, and your
current contribution is $100/month, your COBRA insurance cost would be
$204 (100% of your total current plan, plus the 2% administrative
cost):
"The cost of the monthly premiums for COBRA can come as quite a
surprise if you're accustomed to you employer picking up most of your
health insurance tab via pretax paycheck deductions. When you opt to
buy COBRA, you must pay the full premium amount which can be a hefty
monthly sum even for group health coverage. For a family, you can
figure COBRA coverage is going to be $400 or $500 a month. For a
single person, you can expect to pay upwards of $200 a month."
Are you eligible for COBRA?
http://www.insbuyer.com/cobrainsurance.htm
For employees of the University of Southern California, for example,
2001 COBRA rates with Kaiser Health Care were as follows:
Single 169.84 $ With Vision Package: 176.64 $
Plus One 339.68 $ With Vision Package: 350.38 $
Family 480.64 $ With Vision Package: 495.76 $
2001 COBRA Rates - USC
http://www.usc.edu/dept/Benefits/forms2000/Cobra01.pdf
To determine your employer's contribution, you'll need to consult your
company handbook or speak with your HR department or Benefits
Coordinator. There is no standard contribution - how much of your
insurance tab is picked up is determined by the company.
For more information about COBRA benefits, there are several detailed
FAQs:
COBRA Questions and Answers
http://www.probusiness.com/fsa_cobra/Q_and_A/cobra_faq.asp
Health Benefits Under (COBRA) -
The Consolidated Omnibus Budget Reconciliation Act of 1986
http://www.cobrainsurance.net/COBRA_Law.htm
Know your COBRA rights
http://www.insure.com/health/cobra.html
Insure.com also offers a free forum in which to ask health insurance
questions, including COBRA coverage questions. Insurance laws vary by
state, so you'll need to provide your state before posting.
Insure.com forums
http://www.insure.com/health/forum/question.html
You can also get good insurance explanations from Insbuyer.com, a site
dedicated to untangling complex insurance questions and putting them
in a form the average consumer can understand so they can make
informed insurance buying choices:
Insbuyer.com
http://www.insbuyer.com/healthinsurance.htm
Alternatively, you might want to consider joining a short term plan.
Depending on your state and the type of coverage you're looking for,
it could prove less expensive than continuing your current insurance
under COBRA:
COBRA Insurance
http://www.cobrainsurance.net/
Fortis Short Term Major Medical
http://www.temporaryinsuranceplan.com/
Inselect
http://www.inselect.com/
Instant Individual and Family Medical Insurance Quotes - Quotesmith
http://www.quotesmith.com/cgi/indmed/qsindmedindex
Health Insurance Direct
http://www.consumerbenefits.net/cobra-insurance.htm
If you need further assistance, please don't hesitate to ask. I'll be
glad to help you.
Good luck with your insurance search!
--Missy
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