It’s all good so far. 2/3/13
Sometimes you know “where be dragons”. I know that tomorrow morning I have an encounter with a dragon. The dragon is health insurance coverage.
Yesterday I received the notice in the mail that my regular coverage ended with the end of the month and COBRA was available. The high deductible COBRA coverage costs more than my monthly mortgage.
The first battle is to see where the subsidized coverage is that was mentioned in the separation package. I am due this benefit for the duration of the severance, approximately 2 months. This would be a great tide us over until the new job, But suurely this rate is lower than what was quoted in the insurance information that I received yesterday.
Getting a new policy in place for the short term will be challenging. My previous go to company that I used when working as a contractor is closed for new policies pending a review of Obamacare. My concern is that this may be the trend and there may not be many affordable options available. How is that for irony for the electorate?
Hippocrates versus HIPPA and Hypocrites. Experience has taught me that you have to challenge this dragon, otherwise you end up owing a mortgage equivalent debt to cover a life-threatening illness.
It is a battle that will end up costing me, I will not win (unless the revolution or a zombie apocalypse happens). I just want to be sure I have some control in the amount sacrificed.
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It's all good so far 
February 3, 2013 at 4:45 pm
Don–
Health care has been in such a mess since the government and the insurance companies started running it. My opinion is that sometime in the 80s, health insurance became unaffordable for most people without a job. Even with ObamaCare, the least expensive package is going to be somewhere around $20K per year – and that’s probably with a very high deductable. The Affordable Care Act does nothing to lower rates, because it does nothing to address the fundamental problem – which is a lack of economic control on the part of the doctor or service provider. Since you have money, you are required to pay 3 to 4 times the nominal cost – in order to cover all those that cannot afford any insurance. But I’m sure you already know all of this.
The best situation I can think of would be to have a self-insurance fund. This would mean you pocket and save money that would normally be spent on health insurance, and pay the Obama penalty tax for not having health insurance, which kicks in starting in 2014. Then, over the years, your medical savings accrues hopefully enough money to cover anything big. Given the state of health insurance in this country, you might come out ahead in the long run – or at least until you get to Medicare eligibility. Something to think about.
I remember when I left HP the first time in 1993 – under a voluntary severence. At the insistence of my Dad – I started the COBRA coverage while I was looking for work. Even then, the monthly rate for a single individual was around $650 – which was about the same my monthly mortgage at the time. I paid all that money into COBRA – and to me, it seemed like a waste because I never used it once. After about 5 months I found another job that had health insurance – so I was able to terminate the COBRA payments.
Right now I have some insurance through HP as a retiree, but in 2014 – that reasonable rate will expire – and I’ll be looking for something to fill in the gap. The thought of being self-insured will be revisited. We are already self-insured for dental – and so far it’s not been a big deal.
–Michael