COBRA is retroactive assuming you sign up and pay for it when you get your notification. It is expensive with the employers portion, employees portion, and a 2% fee.

Some group plans end on the last day of the month of termination. You're sure it ended the same day?

^^^^Its retroactive but he has 60 days to make his decision. If he decides to take cobra his premiums will start when his jobs insurance coverage stopped.

quote:

Originally posted by ZSMICHAEL:
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Please discuss whether the coverage he will get through COBRA is equivalent to Obamacare. Most physicians locally refuse to see patients with Obamacare for a variety of reasons.

The health insurance plans under Obamacare would be the same insurance plans available in his zip code outside of Obamacare. There’s no reason why a plan would be available under Obamacare and not outside Obamacare. The only difference is that under Obamacare, you can qualify for premiums subsidies if your income is between 138% and 400% of the Federal Poverty Level for his household. At 138% plus $1, his premiums will be zero because of the Obamacare tax subsidy. Subsidies will decrease until 400% of FPL past which his premiums will be limited to 8.5% of his income.

I’ve had the best BCBS plans under Obamacare. The last one was $500 deductible for the year, period. No premium, no co pay. Previous, I got the second best with $5 copays because I wrongly target $150% plus $1 as my income.

To the providers, there’s no difference between an Obamacare plan and a non-Obamacare plan. It’s the same insurance company they’re used to dealing with. The only difference is to the insurance company as to whether you pay all of the premiums or the government pays a portion or all of the premiums.

Obamacare does cover pre-existing conditions, which is a plus. Buying the same plan off the exchange will likely not cover pre-existing.

COBRA does cover pre-existing.

Local agents can provide free advice on exchange plans. Here in my state the choices are a hundred permutations, making it very difficult to sort out for oneself which plan is better.

Yes no preexisting and as noted earlier plans vary from state to state some using EPOs which have limited physicians and lower reimbursement for the docs.

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Originally posted by LBTRS:
COBRA is retroactive assuming you sign up and pay for it when you get your notification. It is expensive with the employers portion, employees portion, and a 2% fee.

Some group plans end on the last day of the month of termination. You're sure it ended the same day?

Everyone separated was told that all benefit coverage ended at midnight on that day. My last pay check posted on 2 Feb for the pay period ended 27 Jan included the deduction for benefits.

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Originally posted by h2oys:
Appliance Brad…the actual answer varies on where you live. Some states defaulted to the Federal exchange, some states run their own, and others operate as a hybrid between the Feds and their own state.

Here in Missouri, EVERY option has a much smaller network of providers than an employer based plan, AND, operate as an EPO (exclusive provider organization). If you don’t use an EPO provider, you have NO coverage.

Something else I haven’t seen mentioned involves deductible and coinsurance credit. The OP needs to find out if his former employers plan tracks on a calendar or a policy year. If he takes COBRA he gets credit. If he buys Obamacare he loses any potential credit.

Others have said he should talk to a local independent broker and that’s good advice.

True, but it looks like Brad and the OP both live in Michigan so same rules for both.

quote:

Originally posted by Rightwire:

quote:

Originally posted by LBTRS:
COBRA is retroactive assuming you sign up and pay for it when you get your notification. It is expensive with the employers portion, employees portion, and a 2% fee.

Some group plans end on the last day of the month of termination. You're sure it ended the same day?

Everyone separated was told that all benefit coverage ended at midnight on that day. My last pay check posted on 2 Feb for the pay period ended 27 Jan included the deduction for benefits.

I took COBRA before there was Obamacare, it's "retroactive" meaning you have up to a certain amount after being laid off to elect COBRA coverage if you're set on getting COBRA coverage. You have sixty days from when your qualifying event to enroll. So if you don't enroll and on the 59th day, you find you need insurance, then you can apply for COBRA coverage. But you have to also pay retroactive. So it's not like you're saving money; it's just a way to delay applying for COBRA. Link

As my previous post says, Obamacare is a much more financially viable option that allows the possibility of your insurance premiums being subsidized while you're unemployed and your income is reduced. Then it won't be a strain on your cash flow. But if you have the cash and want to pay full fare, than COBRA is what you want.