Insurance after quitting job (YAJT)

Whats COBRA?

COBRA is a means of continuing your insurance that you had with your employer after you left... It is pretty expensive. The last job I had COBRA was about $500/month.

COBRA is probably your best bet. According to this U.S. Department of Labor website, it is available to most people for up to 18 months after leaving an employer:

https://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html

And you may think that COBRA is expensive, but the alternatives can be much worse.

A simple fracture (slipping on the ice in this crazy storm?) can run you into the thousands easily. An appendicitis? I have no idea how much those run these days, but I'm guessing none of us would love to fork out for that.

Many insurance companies simply don't sell insurance to individuals, so already plans are going to be limited. And in my area, the one available provider will charge something like $700+ per month. That's more than the COBRA costs.

Other options to consider: high deductible health insurance. Your deductible (the amount you have to pay before the insurance kicks in) can vary quite a bit - my current deductible is $5000, and it was $2500 under the plan I had in 2005. The good news is that the monthly premiums are quite affordable. You should also be able to couple the high deductible health insurance with an HSA - health savings account. The money you put in this account is pre-tax, and can be used (also without tax) for qualified medical expenses.

Another thing to think about - whatever state-sponsored health insurance might be available where you are. In NYS, people with low to moderate incomes can purchase Healthy New York. I would guess that most of you don't qualify for such programs, but you never know. It's worth a look.

Of course, it's all about a calculated risk. I didn't have health insurance for four months when I first came to NYS. And I thought about it every morning as I crossed a busy highway on my way to work (on roller blades).

Thanks for your replies. I contacted HR, my benefits terminate midnight of the day I resign.

COBRA rates for me is around $300/month.

$300/mo is a steal. Take it and run.

(unless you can handle the risk of being uninsured. Then be very careful and bank that $300 each month, laughing all the way to the bank.)

So do b-school students then get insurance through their school when they start in September? Anybody know how this works?

yeah, you do. if you look at the school's living expenses, they'll probably include the cost. Some schools require it, some don't.

Cornell's is $1550 for the 06-07 academic year.

What kind of coverage do you get for the 1550, is it competitive or bare bones? Also, do you then get private insurance for the summers or is that included in the academic year?

I can tell you what Tuck does.

You are covered from the start of school for a full year (Sept-August). The coverage is actually pretty good when you use the on-campus medical services, pretty much 100% coverage with no-copay. No dental coverage, but very good prescription coverage (100%), again if you use the on-campus services.

Off-campus they seem to have $500-1000 deductibles, then everything else is covered. Outside of the network, it's even more.

If you do a search for specific schools health plans, you can find the info you're looking for.

RF

Kudos to you. Thanks. Did you opt to pick up Dental insurance on the side or going sans a check up for the two years?

I'll probably just pay for a single check up out of pocket. They usually run under $100.

There is the chance that you'll break a tooth and require something more expensive, but most dental plans don't cover much beyond check-ups (I think crowns are usually covered 60% on REALLY good plans).

RF

Depending on your school, some plans are a great deal and others are not. It greatly depends on the type of coverage you want. If you have a family with little kids who seem to go to the doctor or get sick once a month, then a low deductible, low copay plan that picks up 100% for primary care services would be ideal for you. However, if you are a normal healthy 28 year old that has no wife or kids and never goes to the doctor, then you probably want a high deductible plan, which might run you $75-100 a month, again depending on coverage.

There is a great website for comparing health insurance plans in your area. The URL is https://www.ehealthinsurance.com. If you need short-term insurance to cover a gap in employment or a long-term option, then you can compare prices and features on this website. If you have any questions about health insurance, shoot me a PM and I'll try and help you based on your situation.

to give an example on Duke's insurance, I got hit by a car during term one last year. The total medical bills came to a bit over $100,000. I think I paid $2000 out of pocket, and then didn't pay more because that was my annual limit. I felt like that was pretty solid coverage. I have to say - before school I'd been on high deductible insurance, and it would have been a serious downer to have that with that accident!

Keep in mind that COBRA is RETROACTIVE for 60 days. Which means whether or not you sign up for COBRA you are covered in a sense. If you do not elect COBRA and get in an accident within the 60 days, you can retroactively elect COBRA, pay the COBRA fees and be medically insured for anything that happened within that 60 days. So unless you have a gap between the 60 days and school insurance starting you do not need to pay anything extra. If there is a gap, you may want to look at early arrival insurance at your school.

Good catch, forgot about that. I'm willing to bet that will apply to a lot of us going forward as I'm sure a fair chunk of people don't leave their jobs more than 2 months from the start of school.