Do you know what the rules are for Health Insurance after layoffs? Do we get to keep it for a certain period of time?
Also, once that expires, do we have an option of extending it and purchasing additional health insurance that can cover us and our families.
Please share - all of this is new for me, I think I might be let go and I want to be prepared but I am afraid to ask.
Not true in all states. Unemployment can start right away in some states.
I also took the voluntary RIF in Sept. 2016. After looking at different health insurance options, the COBRA was the cheapest for me. About $550/month for myself only. The other open market options were at least $1000 / month. You can get COBRA for 18 months. Also, be sure to sign up for unemployment. You can't collect until the severance runs out, but still good for 26 weeks after that.
I haven't looked back.
As pointed out COBRA is very expensive, you may also want to investigate outside for other options.
Timing for applying is important if you want to avoid break in coverage.
Couple of things to keep in mind:
If you currently have additional family member covered, everyone does not have to take one type of coverage. For example, you may elect to remain covered by Cobra and other family members may elect different insurance; or vice versa
If the main source of household income is your full time work then you may qualify for a discounted rate for ACA insurance, which is based upon forecasted yearly income or qualify for medical insurance portion of Medicaid if your state has accepted the expanded Medicaid option (only household monthly income is counted to qualify for medical, not your assets).
If you get laid off towards the end or early during the year, then you can lower your yearly forecasted income, as you do not know when you will be employed. You do need to take into account the severance and unemployment payment in the yearly income forecast.
You may also elect to take Cobra and then switch during the open enrollment or when COBRA ends under "special event".
If you want to keep your doctor, you may want to check with them which ACA plan they accept, or if they accept Medicaid. Otherwise, check the provider directories and call the doctor to ensure they are taking new patients. Depending upon your location, many providers accept one or more ACA plans and Medicaid.
Caveat: With the push to reform health care, there may be risks with selecting ACA or Medicaid. It may be possible to get back onto Cobra is there is a loss of coverage due to changes in ACA or Medicaid; but who knows....
Other Tips:
Recommend filing for unemployment as soon as laid off.
Adjust amount deducted per pay period or add one time amount to the HSA deductions. The full yearly amount will not be deducted as you will have less paychecks. You can add to HSA afterwards, but it will be after-tax $ vs before tax $ if taken from your paycheck. As someone pointed out, you can use HSA to pay for Cobra or other medical bills.
You can also adjust 401k deductions only from paychecks (not from severance). If you want to max out the 401k contributions, you may want to increase the amount now, and then stop or reduce it if you are not impacted.
Download copies of the payroll check regularly. Access is cut as soon as you leave the door.
You can request One Stop to sent them to you, but it is a hassle.
Change 401K, tax, insurance, etc website access to your private email address.
If you have dental/vision coverage you may want to use the benefits. You can elect to keep dental or vision coverage with Cobra and select another option for medical.
Agreeing with the answer -tyw gave: continued coverage to the end of the month your severance ends and then 18 months of COBRA after. There are special rules under which a spouse can be covered longer, but most likely not in your case. Call One Stop.
Also you can use your HSA to pay for COBRA premiums, so if you've been contributing to that you can tap it.
Get a health care salted person to help. Prices are moving target. There is or was what was called short term healthcare, was the cheapest option for about 6 to 9 months. Was supposed to be for layoff victims.
Agree with previous posts. I took the voluntary layoff in Q3 2016. One Stop can get you all the information you need. I have BCBSNJ for self and spouse. Insurance continued thru last month of severance (end of Q1 2017) at same rate as active employee. I chose continuation thru COBRA and it now costs $1140/month, so very expensive. Also, because of the way COBRA insurance is billed, be prepared to pay for two months the first time it is billed. After that it is billed monthly. Others may have had a different experience but that is what I experienced after leaving Aero (Phx-Deer Valley).
You can continue your Honeywell coverage through your severance/pay continuation period until the end of that month. You keep paying what you've been paying. At the beginning of the next month, you can get COBRA coverage for 18 months for 102% of Honeywell's cost (a little over $1400/mo for me). I ended up switching to Blue Cross in Florida for $1177/mo instead of cobra. One-stop is well versed in what happens; they've had a lot of practice.
Call one stop. They can quote you current rates for COBRA coverage. You can purchase it for up to 18 months.
You get a COBRA coverage. I think it's a few months. After that you can extend it - out of pocket - it's VERY expensive to buy. Sorry, don't know the details but wanted to chime in before someone with more details replies.