So, the Cisco ER pkg says it gives you enough money for 9 months of your current coverage via COBRA. I spoke with BlueCrossBlueShield about coming off of COBRA and starting a new family policy OUTSIDE of the enrollment period. They said for that to work the COBRA policy must terminate before the enrollment period. I asked Cisco HR about a COBRA policy termination date. They said the COBRA policy is month-to-month and can be terminated by me at any time, but not beyond 18 months. Not sure of this answer. Does anyone have experience with this? Thanks
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Even when eligible for Medicare, RMAP is still expensive.
Anyone know if Cisco makes profit by reselling RMAP to ex-employees?
RMAP may seem to be good for retiree. but.....
Remember the medical is not exactly the same as COBRA
for example you have a medical HSA coverage under COBRA, this is exactly the same plan as active participant.
under 65, RMAP charges slighter higher premium than COBRA, and RMAP deductible may be highter than COBRA
over 65, RMAP needs to choose a different plan than HSA, but somehow the premium drops because RMAP becomes a secondary coverage
However, RMAP secondary coverage still have annual deductibles and let say $3000 to $4500
If you choose Medicare at age 65, your cost is roughly $250 + supplement coverage about $200
$450 monthly annual cost with 100% coverage with no deductible required
Medicare is better than RMAP after age 65
The only advantage of RMAP is able to get dental and vision insurance coverage which is not included in Medicare.
Most retiree has to pay out of pocket cash pay for these coverages without insurance
For a couple, RMAP is roughly $1700 for both dental and vision. If you think your family uses more than $1700 a year, then buy RMAP dental and vision coverage.
The other scenario RMAP is better than COBRA
if you are 61, you buy COBRA and the coverage is 18 months
u will be 63.5 when COBRA is terminated
You dont want to buy obama care because the provider is not in the insurance provider list
You can buy RMAP for the next 1.5 years and able to get the same provider, because RMAP seems to have larger coverage than obama care. RMAP has Kaiser, HMO, PPO etc, but Obama care is restricted to blue cross / blue shield provider list
Hope that help
"Given that you could get the same coverage from either cobra or rmap but cobra appears to be much cheaper, is there any advantage to rmap? Why would one choose it over cobra?"
RMAP is something you look at closer to age 65, as you approach Medicare. After age 65, the prices drop considerably and it works better a secondary payer to Medicare. COBRA appears to be the better price for short term.
Luckily if you have a working spouse, you can probably save much more money by going on their plan and pocket the difference. Cobra and RMAP are WAY too expensive and but if I were to chose, would go with Cobra.
Given that you could get the same coverage from either cobra or rmap but cobra appears to be much cheaper, is there any advantage to rmap? Why would one choose it over cobra?
For a 60 yo individual, marketplace Obama care may cost $1000 with $7000 deductible with restricted doctor in provider list.
Similar plan from COBRA is about $750 with $3000 deductibles
Retiree medical plan cost $1000 under 65 with $4500 deductibles.
You pick your choices.
I used to wait till last minute about 60 days before enroll COBRA, because I could find a job easily.
This time is different, it may take me 9 months to find a job. I enroll COBRA within 3 weeks
I had to go on COBRA when I got laid off. It is a month-to-month policy. You can cancel at any time. BCBS is correct that they can't have a double policy. So, when it starts, you can cancel COBRA.
You can also do a little research and have COBRA retroactively start. Say you get laid off in Oct and need it in Nov. If you didn't activate it then, you can in Nov and have to back pay to Oct. I urge you to research this though because it is a tricky piece.
A word of caution - don’t just simply compare the monthly cost of COBRA/RMAP to outside health plans. You’ll need to compare deductibles and coverages as well.
A family member elected a ‘less expensive’ outside health plan. When he went to use it, many of his normal medical providers weren’t covered.
The less expensive plan cost him more in the long run.
Weigh options carefull.
Agree, cobra and ramp are very expensive compared to outside options
No sure why Cisco tells employees RMAP is a great benefit perk
Personally, I regret going with Cobra. The cost of health insurance for me was lower on the marketplace. Compare prices.