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Jbert · Sep 28, 2007, 06:58 AM

I understand that cobra rates are determined in some fashion by the Plan that is in place for the Company. The rates that I have to pay for 2007 increased 20-30 percent over rates for 2006.

Is this much increase possible??

Thanks

Jim

ScottGem · Sep 28, 2007, 07:07 AM

Sure is. The COBRA rate is the same rate paid by the company for each employee. The advantage of using the COBRA rate is that you get the benefit of the group rate discount given the company.

Insurance rates have gone up greatly in the past few years. Also, COBRA rates only remain in effect for a period after termination (18 months I believe). After that time, the rate may revert to a non group rate.

Fr_Chuck · Sep 28, 2007, 08:48 AM

Yes 20 percent increase on insurance is almost normal in today's medical environment, The plan I have increased 10 percent this year from already high rates.

But Cobra rates, there is no one cobra rate, the rate you pay for your cobra insurance is based off the price your company pays for their employees plus a small admin fee added in. So this price has always been the price the company pays, most employees don't realise the difference often between what they pay and what part the company actually pays.
But remember Cobra is only temp, you will have to get your own private insurance when it runs out.

Jbert · Sep 28, 2007, 09:38 AM

To Scott Gem and Fr. Chuck---Both answers helped and both of you were right on as to what I could learn. After being forcefully retired due to health, I have come to realize how bad our Insurance coverage is in the country. 18 months is the period and then some like myself could get extended months but they are at 150% of the base cost. Makes me wonder what more the Insurance Company will do to earn the extra 50%. Go figure, Huh!

Thanks again

Jim

ScottGem · Sep 28, 2007, 10:05 AM

You have to remember that insurers can charge group rates because they can spread the risk out over a group. So, while one employee may cost more than the monthly premiums, another may have no claims at all.

Once you are not longer art of a group, that risk is not longer spread around, so the insurer needs more to offset the costs.

Jbert · Sep 28, 2007, 11:19 AM

Thanks ScottGem, that makes a lot of sense to me. If the next 18 months is anything like 2006-2007 present, I will not mind the payments for sure.

Have a great day

Jim

RichardBondMan · Sep 28, 2007, 07:26 PM

I would like to add my thoughts on COBRA. Often it's not how much one pays for insurance, it's whether it's even available... to give you an example, my brother wanted to retire from a being a radiologist and the group of doctors he wanted to retire from had coverage with an insurance company for over 20 years so naturally, he applied to them for individaul health coverage since he was only 55 and desperately need health insurnce... they declined him due to high blood pressure... the issue was no so much how much he would have to pay but finding a company that would insure him. COBRA, if you are healthy and from my limited experience with it, doesn't really offer any discount over costs that one can find on the open market. Granted, you may not find similar coverages such as frills like dental coverage, etc. but COBRA does at least offer for those unable to secure health insurance due to preexisiting conditions, at least coverage for 18 months when no other coverages can be found at any price. Diabetics are very good examples of individuals who truly have issues with even finding coverage.

Jbert · Sep 28, 2007, 08:48 PM

RichardBondMan you could not have posted a better story. And that will be our problem also in 18 months. AARP now offers United Healthcare and I saw the application and I can see where any condition could be questioned. I am not sure about other states but in Texas there is a High Risk Pool offered by the state. Ours is Blue Cross Blue Shield last time I looked. This is the last resort for some people, it's high in cost, but at least you have some Insurance.

Jim

RichardBondMan · Sep 28, 2007, 08:58 PM

Thanks for the info re the TX pool, my brother secured his coverage from the same company that had insured his group of doctors for many years and from that same company that declined him individually but only by applying via some Federal Act that entitled him to coverage. I believe the Act was entitled "Kennedy-Kaussenbaum sp ?".

Fr_Chuck · Sep 29, 2007, 03:17 AM

Also while it will not be as good of policy, your current insurance company, and some others have to accept a transfer from Cobra to private insurance ( they can not turn them down, only rate them up for the ilness) This is one of the provisions of the Cobra laws also.

Jbert · Sep 29, 2007, 07:22 AM

Originally Posted by Fr_Chuck

Also while it will not be as good of policy, your current insurance company, and some others have to accept a transfer from Cobra to private insurnace ( they can not turn them down, only rate them up for the ilness) This is one of the provisions of the Cobra laws also.

Fr_Chuck can you explain a little more here. FYI here is my situation. Worked 30 years on 1 job, got fired due to health and employee risk. Company kept my wife and me on company insurance for 18 months then transferred to Cobra. We are just starting cobra this month
At $910.80 per month. I will do it for 12 months until I can get Medicare, but I still have to get my wife something in August 2008. Can this transfer from Cobra to private be just for my wife or would I have to be on it also as I was the Principle Qualified Beneficiary ( PQB ).

Thanks so much

Jim

jef1056 · Oct 4, 2007, 12:16 PM

First remember COBRA is a federal regulation for companies with over 20 employees. Sates can make it more comprehensive and apply it to companies under 20 if they choose. So every state can be slightly different.

1. If you are disabled you may qualify for Medicare before you reach 65. If you are disabled in the first 60 days of COBRA you may be eligble for 36 months.
2. Your spouse is eligble for COBRA independent of you. If fact, you becoming eligble for medicare in 2008 it could/may be a qualifying event and start her 18 months over again.
3. Although COBRA specifies certain periods that continued health coverage must be offered to qualified beneficiaries, COBRA does not prohibit plans from offering continuation health coverage that goes beyond the COBRA periods. But the same options would have to be offered to everyone.

Also check here for additional information.
FAQs About COBRA Continuation Health Coverage