Anyone with COBRA advice?

[Steerpike]

I was laid off last month and have been given the option to extend my health benefits via a COBRA plan.
The only hitch is that it costs nearly 4 times more than my former plan.
Is this really supposed to be affordable for the newly unemployed?

[Taverner]

1. GET IT! Once you let insurance lapse, any conditions are "pre-existing"

And you can be denied coverage

No lie

[Steerpike]

3. I want to

But, I'm fairly certain 375 dollars a month just for me is going to severely cut into my family's food plan. Is there nothing in upcoming health care reform that will help me to get insurance down the road?

[Taverner]

4. I wish I could help - I would almost rather take out debt than lapse coverage

Because once you do, any previous medical issues won't be covered.

And it looks like the GOP are going to de-fang any punitive measures against companies that do deny coverage

[Steerpike]

18. Well

I do respect your judgment...boy...it is a tough call!

[rucky]

16. I thought we fixed that

when does the new law kick in?

[Taverner]

19. 2014, and not retroactive

And - get this - the fine is only $100

[izquierdista]

2. Welcome to the club

My first year, the premium was quite affordable, but the second year it went into the stratosphere. It's a final "don't let the door hitcha in the ass!" from the employer who valued your important contribution.

What it will really focus you on is how you are going to afford health care on your own. I would suggest stand-by airline tickets to France (or some other country with a health care system).

[GoCubsGo]

5. Google "temporary health insurance"

You can get temporary insurance at lower rates than COBRA. They have a whole range of coverages, and you can buy it 3, 6, 12 months at a time. All the major insurers sell it.

[amyrose2712]

6. I don't know if it had run out, but the Stimulus allowed me to get it

at a huge discount. I was on unemployment at the time and it was the difference between affording it and not.

[amyrose2712]

7. Search for federal COBRA subsidy.

[amyrose2712]

8. Here is the link to the DOL

http://www.dol.gov/ebsa/cobra.html

I PMed you too.

[Steerpike]

10. Thanks!

From what i see there...May 2010 was the cutoff date for that.

[amyrose2712]

9. Crap, I am sorry looks like it wasn't extended.

[customerserviceguy]

11. How's your health?

If you're young, and have few prospects of needing medical care, you might skip it. I went without health insurance from 2000 to late 2005, and managed to luck out. But, I drive safely, and don't have any dangerous hobbies.

COBRA costs a bloody fortune, that's for sure. It's a very difficult decision to make, just as your income gets severely cut. You worry about tossing money down a rathole.

[Steerpike]

13. too bad

I'm 53 years old...

[customerserviceguy]

20. That's just your age

I went on the high-deductable health insurance policy at my work, and I'm letting my company stuff $75 a month into my HSA, plus whatever I can pack into it.

I have only one health problem, and it's easily controlled by a drug that I can get for about a quarter of the prescription price, from a Canadian pharmacy. I pay about a buck a day for the pill I need, and I'm fine. If I had the same choice to make as you do, personally, I'd forego the big bucks that COBRA would want, and just keep on doing what I'm doing.

Just because you think you're old doesn't mean that you have to run to the doctor every month for something. However, if you do have a serious condition that requires monitoring, and could easily turn into something expensive, well, that might dictate a different course of action.

[Steerpike]

12. wow...

I can keep COBRA for 18 months for about 6800.00 since I was laid off and not fired. Seems like a very expensive policy for an unemployed guy...

[Ilsa]

14. We kept ours because our son has a Pre-existing condition. Now we are

employed and with insurance; the coverage carries over to a new insurance plan for him. We were fortunate to find work right away, about two weeks after getting laid off.

Our COBRA payment was $1300 for our family for one month. That was 75% of monthly unemployment insurance payments. We were more worried about medical than our house payment.

Very best of luck to you.

[sarcasmo]

15. In 2008 cobra was about 750 for me and the wife, it's crazy expensive.

[Steerpike]

17. I may have to pay up

and go apply for food stamps etc...

[Sgent]

21. Apply for an individual policy

if your in good health, an individual policy will cover you reasonably well and be much cheaper. The catch is you have to undergo medical underwriting, so if you have any significant problems you will probably be denied coverage.

You have 63 days from the date of termination to make your election for COBRA (retroactive), and then you can pay it monthly afterwards until your new policy is in place.