Greg and Kathy (both 54) are retiring next month. They’ll be offered COBRA through their former employer at a cost of $1,455/month.
We’re helping them shop
for a better deal in the private market.
Here’s a wrinkle. Greg’s doctor is in the Aurora health system. Kathy sees a Froedtert doc. The insurer’s offering a network that includes both Aurora and Froedtert are limited. A silver ($2500 HSA) plan covering both Greg and Kathy - from an
insurer offering a broad network - would cost $1,304.
But if Greg bought his own plan from an insurer with an Aurora only network, his premium would be $555. If Kathy bought a plan from a different insurer – one that includes Froedtert in their network - her premium would be $628.
Let’s review.
Annual cost for COBRA: $17,460. One policy covering both Greg and Kathy: $15,648. Separate policies: $14,196.
We all know shopping pays dividends. Especially if you know the tricks of the trade.
Reminder: Open enrollment starts November 1st and runs through January 31st. For a January 1st effective date, applications must be submitted by December 15th.
Commissions are embedded in premiums whether you use an agent or not; i.e., professional "shoppers" cost you nothing!
