What to do about health care coverage?
Cobra only runs 18 months and Medicare doesn’t kick in till 65.
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Well 3 additional things to note:
1. Depending on the Company, your plan may be convertible - but you likely will not be advised until close to the end of the cobra period. But someone in your HR department might know.
2. The guarantee of coverage law that was passed did nothing to address the amount of money — all my attempts to find out that cost were just met with it’ll be expensive. Not until close to cobra running out did I find out how much don’t recall the amount but maybe 36000 per year-ridiculous amount.
3. We got a Blue Cross Blue Shield high deductible-5000 bucks deduction and no RX coverage. Cost about 800 bucks per month for the 2 of us—likely more now.
It ain’t pretty. I know quite a few people who just kept working beyond when they could have retired, except for health care coverage - so they continued on working.
In my company’s retirement package they tell you up front what the retiree healthcare insurance costs, and what cobra costs.
Retiree is around 1000 + a month and runs for however long you pay for it, till 65.
Cobra costs around 540 a month, and runs 18 months.
So, if someone retired at 63-1/2 and did cobra, then they’d do OK.