by glarryb » Tue Jan 11, 2011 12:59 am
I live in Calif. Recently out of work and my union and company offered me cobra. the question is aren't there different rates supposed to be available. They are telling me that it is the same rate for me 1100 a month or my family of 4. One price for all employees whether single or families. My sons already have medical insurance and my wife quilifies for a health savings account.
Posted: Tue Jan 11, 2011 04:34 pm Post Subject:
Well this seems to be their way of ensuring uniformity for all the employees with no special favors for any body. I think this might be the result of an agreement between employer and cobra insurance, kind of policy your employer went for. If you want you can go to their website and seek more information.
Posted: Tue Jan 11, 2011 06:16 pm Post Subject:
an agreement between employer and cobra insurance
Once again, goody, your lack of knowledge is glaring.
There is no such thing as "COBRA Insurance". When a person is terminated from employment, has a reduction in hours, or any of four other qualifying events for dependents occurs, the EXISTING group health plan(s) (medical, dental, vision, but not disability income, LTC, or life insurance) in place for employees must be made available to the affected participant and their dependents AT THE CURRENT group rate charged to other employees (plus up to 2% for administrative expenses).
The OP asks if there aren't different rates for the coverage. That is a question for the union/employer to answer. If there is a single rate for one employee or a family of 4 (or more), then that is the rate that the former employee and/or dependents must pay. It is HIGHLY UNUSUAL for a health plan, even a self-funded plan, to charge the same premium for a single person compared to family coverage.
It might even be considered DISCRIMINATORY under federal law, because the risks are inherently different. This, in effect, is forcing single persons to subsidize the health care premiums of their married or other coworkers with dependents. ERISA always addresses its concerns about "persons similarly situated" -- and single persons compared to married persons or persons with dependents are NOT necessarily similarly situated.
To the OP . . . if you believe the information you are being given about the cost of insurance under COBRA continuation is not correct, you can make a complaint to the US Dept of Labor, Employee Benefits Security Administration ( www.dol.gov/ebsa ). There is a regional office in the Los Angeles area.
Posted: Thu Jan 13, 2011 06:09 pm Post Subject:
Thanks once again Maxx for enlightening me once again!!
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