Thread regarding Chevron Corp. layoffs

Thanks, 2ynq. That $723 premium for the Chevron PPO Option 3 (now called the High Deductible plan) is a non-starter. That's crazy high. Apart from making those killer high premiums, one also needs to meet an extremely high annual deductible. No way. Your only choice other than not taking out insurance, is to select a cheap ACA policy and try not to get sick, only to get your free preventive exams. Thank God that a diagnotic colonoscopy is free too. Stay with the ACA until you and spouse are 65 years old, then go to the Chevron Retiree Medical. If you have earned a Chevron medical contribution percentage, you'll be much better off on getting better service for the premiums. Good luck with any decision to move elsewhere just to get better ACA rates. The ACA is likely to be repealed, revised or collapse under its own weight real soon. Beware. Move for quality of life reasons, not only for medical care.

This is -2cus. I live in an area with high medical insurance costs (not CA, LA, or TX). In evaluating a possible move I have noticed my Marketplace premiums could be significantly lower living elsewhere. For clarification the $724 was the retiree medical option 3 under age 65 and not the 6 months of Chevron paid Cobra coverage.

I'm the same age as @2cus and I live in the greater Houston area. Same case, just me and spouse of same age. The info he provides about ACA rates is accurate. He should also check out an HMO through a local medical network called Community Health Choice. With a total annual household income of $27500, the premiums for this $0 Deductible plan is around $65. For the other poster who questioned why the Chevron Retiree Medical plan costs so much even with the 100% contribution. It costs so much when the retiree is under 65 years old because the participant pool is very small compared to the active employee pool. The cost will come down to a more affordable level after age 65 when Medicare will contribute to the core services you will receive. The Chevron Medical Plan then effectively becomes a "supplemental policy".

@-2cus - Wouldn't your switch to CVX retiree insurance as an option after the 6 mth, cobra coverage if your income is higher? I found that is comparable to the ACA comparable plan, plus you don't have to deal with their flaky coverage/system.

And how can the premiums be so high with 100% Chevron contribution?

"That compares to $724 / month with a 100% Chevron contribution."

We don't pay near that much for 2 people in our 50's.(United option 2) And doesn't that premium stay the same with the first 6 months of Chevron paid-for Cobra coverage? I'm sure I am missing something in your post, sorry.

An example of an ACA premium with subsidy. For a couple age 57 in my state & county ACA insurance comparable to PPO Option #3 is $226 / month with a medical MAGI income of $21,777. Increasing to $678 / month at an income of $63,999 / year. With an income outside those ranges there is no subsidy and the premium is $1896 / month. That compares to $724 / month with a 100% Chevron contribution. After the COBRA subsidy ends, I will choose a policy with a subsidized premium <$100 / month that corresponds to my projected medical MAGI. If my projected income for a year is above $63,999 use a Chevron plan. As mentioned elsewhere look at your own state marketplace plans, subsidies & circumstances to determine the best choice.

Once you have an issue it is almost impossible to get the train back on the track. For example, they said they did not receive my monthly premium.....I found out after I was denied a prescription....the ADP line is all Indians. I had proof of delivery and a picture of check form and tracking number. This was ignored and I had to complete a new form to the "review board". Review board are Indians that can not communicate in English. I did get the ruling in my favor after 71 days. To get reimbursed for payment under that period required another format and another review by the Indians. I am currently owed $3,111 from September of last year. I think I will get the check this month but who knows. I would pay the entire premium with one check if feasible.

@ugp, thanks for the detailed explanation of your ordeal. I've been hearing similar horror stories. My experience in mid 2015 was a whole lot smoother. There was a 30 day period for me between my termination date and my COBRA activation date, so I had no complaints. Sorry to hear these big delays are happening but not too surprised with the number of folks going through the mill at the same time. For those of your that need to pay for prescription meds without coverage, go to www.GoodRX.com or install the app on your smartphone. Talk about saving money. Nice website and app to have.

"How much of a cost difference is there for the increased COBRA premium compared to ACA insurance?"

Depends on your state and what is offered. The California plans are pretty much all high deductible. But if your income is low enough, you may end up only having to pay a very small amount for your coverage. So if you're only living on what unemployment pays, you'll get the coverage for practically nothing. GENERALLY speaking, I found that if your estimate your annual income to be less than $25,000, you will get a generous subsidy. As the income goes up, the subsidy goes down and at some point there is no subsidy.

If you are SINGLE and you are looking to keep UnitedHealthcare after the COBRA subsidy ends, be prepared to be paying close to $700/month for the PPO Option #1 with the $250 annual deductible. That's hefty and you would be able to probably find something cheaper under the ACA even without the subsidy. You really need to just go to your state's insurance marketplace (in CA, it's coveredcalifornia.com) to check to see what is available and if you are eligible for a subsidy. If you utilize your insurance frequently, it still might be cheaper to go with the COBRA after the six months because the UnitedHealthcare PPO Option #1 deductible is very low at $250. It's just not a question there's a one size fits all answer too - depends on your state, income, and insurance utilization.

First let me correct some things I just read:

"If you do need to seek medical services in that gap period, just pretend there's no change in your status. Present your United Healthcare ID card and get your services. "

Good luck with that - when the doctor's office runs your insurance number through at the time of your service, you will show up as having your coverage cancelled. Since the billing is all done electronically at the time of service, they can't hold charges and bill later. You will not be able to refill a prescription, you will not be able to use your FSA debit card, see the dentist or the eye doctor. God forbid but if you have to go to the emergency room, you'll be paying those charges yourself. Yes, you're supposed to be able to submit them for reimbursement to the carrier once your coverage is restated under COBRA, but good luck with that (scroll down a bit and you'll see what some people have had to endure, and if you're like me and only received the minimum severance, you aren't flush with cash to pay for this stuff yourself). I have been on COBRA from other employers and never even had a gap between my last day of group coverage and my first day of COBRA. Chevron's process is something that words do not describe.

"They have 14 days after you lose coverage for them to get you the info and you have 60 days to elect."

Not true, under the COBRA law, the employer has 44 days from the termination date or the last day of insurance coverage WHICHEVER IS LATER to get the COBRA information to you. Once you receive it, I believe you have 60 days to return it with your selections and premium, but the initial time period is 44 days and believe me, you won't be getting the COBRA packet until the end of that 44 day stretch. My term date was 4/15 and my last day of coverage was 4/30 and my COBRA packet didn't come until the last week of May. They knew my last day since the end of last year, it should have all been ready to go wouldn't you think?

So when I finally received my COBRA packet on MAY 23rd, I went online to make my selections and pay my premium directly from my checking account thinking it would be the fastest way for them to get the payment and my coverage be reinstated. Ha! Today is June 2nd and I STILL am not showing up as covered under any of my insurances. ADP told me it initially takes 7-10 days after my payment is processed for my coverage to be reinstated. Since today is day # 11, I contacted them. They told me that the Benefits Department is responsible for letting the carriers know to reinstate my coverage so he transfers me to the HR Service Center. I speak with someone in benefits who tells me it takes up to TWO WEEKS from the time they (Benefits) are informed by ADP that my selections and payment have been made until my insurance is reinstated. She told me they didn't get informed of my selections and payment from ADP until May 27th (even though the payment was processed May 23), so it looks like I won't even have coverage until mid-June.

I've had to cancel two doctors appointments, one dentist appointment and one medical procedure I scheduled for after I was done working since I knew I'd have the time. Meanwhile, medications I take daily are running out. I paid for May and haven't even been able to use the insurance! I'll probably have another job and new coverage before I even get back on Chevron's insurance under COBRA.

I don't really have any advice except be prepared to witness Chevron at its finest when you elect COBRA coverage. It is a nightmare that doesn't want to end.

How much of a cost difference is there for the increased COBRA premium compared to ACA insurance?

@nfo, you may indeed be correct. I know they try to get you the COBRA paperwork as quickly as possible. Keep in mind that all premium payments are due in advance of the coverage month. You still get a 30-day grace period to get your payment in, but try nit to push it. Pay early if possible. Once enrolled with ADP, you can track your payments and coverage online. Details are provided in the paperwork you will receive after being terminated. Also be sure to communicate with Chevron's HR Service Center at 1-888-TALK2HR at least 30 days before your subsidized COBRA coverage ends in 6 months. You need to inform them you wish to discontinue the coverage, else they will assume it to continue under non-subsidized rates. Also don't forget to inform Chevron HRSC (now) if you intent to discontinue your life insurance coverages. Failure to do this will result in an "Overdue" invoice in the next 60 days. Life Insurance premiums, just like your medical premiums are billed in advance of the month. Take take of all loose ends today. Don't wait until July 1.

Not true. They have 14 days after you lose coverage for them to get you the info and you have 60 days to elect.

My last day is also June 13th. I will go on Chevron Retiree Medical starting in July. I will have to mail in two months of payments in June for July and August. I was told the paperwork would be mailed to me before the end of June. I am 100% vested but the monthly increase will almost double compared to when I was employed. I will receive the Cobra pack about 45 days after June 13th as you said with the option of switching to Cobra. With Chevron retiree medical you can switch off and get back on anytime as I asked that question to HR.

I was laid off last year. I understand there were many more people laid off after I left, so I'm not sure if the larger numbers of retirees to process is putting a kink in the process. I'd hope they have learned to be more efficient by now. Lots of practice. In my case, it took about 30 days for my COBRA insurance to get set up. I moved quickly and sent my ADP COBRA Services papers back within 2 days of receiving it. It's important to send a check for your first month premium along with your paperwork. It will speed things up. Chevron is telling you 45 days, which is correct. It could take that long. But don't be too concerned. Your Chevron Medical will be paid through June 30. Even though you'll technically be without insurance until it's bridged by COBRA, your medical insurance plan will be the same. No change. If you do need to seek medical services in that gap period, just pretend there's no change in your status. Present your United Healthcare ID card and get your services. Be sure to stay in network and keep every shred of paperwork and receipts to give ADP COBRA Services once your COBRA insurance coverage is in force. Read their application packet well. You can send your first payment with your app, but your subsequent monthly premiums are to be mailed to another address.