Short Term Health Insurance/Asset protection - Advice Needed

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Topic Author
guptonc06
Posts: 28
Joined: Fri Mar 20, 2015 11:17 am

Short Term Health Insurance/Asset protection - Advice Needed

Post by guptonc06 » Fri Aug 23, 2019 2:37 pm

Looking for Advice:

Life happens! To make a long story short, I quit my job a few months ago. I am offered COBRA through previous employer but do not want to enroll due to high costs. I have been offered a new job, which I will accept.. however there is about a 30-60 day grace period before I can enroll. Furthermore, the health insurance is not very good to say the least.

Option 1
Deductible - $5,000
Max Out of Pocket - $7,000
Coninsurance - 50% employee
Monthly Premium $100

Option 2
Deductible - $5,000
Max Out of Pocket - $6,850
Coninsurance - 20% employee
Monthly Premium $155

I am in my 30's, healthy, and just need insurance for myself. I have been considering short term health insurance in the interim, but also would consider using or continuing the coverage for up to a year or longer.

Another factor - Recently sold a home, and am in transition to buying or building a house and am sitting on quite a bit of Cash 100k+. Obviously, I need to protect that nest egg and do not want for a dumb and/or unlikely/unforseen accident to happen to bankrupt me or my family.

I have considered moving all of the cash out of a Joint Account (me and my wife), and opening up an an account in her name soley to try to protect the money. Not even sure that's an option or would protect the cash, just a thought. Also, Wife's employer will not let spouse on health insurance, so that is not an option (FWIW).

Does anyone have recommendations or experience with: going without insurance, short term health insurance plans or the best way to protect myself in this situation?

I appreciate any advice and input. Just trying to make the best Bogleheady decision.. Thanks in Advance guys, you are the best!

iasw
Posts: 233
Joined: Mon Dec 05, 2016 2:02 pm

Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by iasw » Fri Aug 23, 2019 2:42 pm

How many days will there be between end of work and when you can officially participate in your new plan?

COBRA allows you to backdate enrollment up to 60 days. So, youd have 60 days to elect coverage IF you end up needing it. If not, don't pay.

If that gets you through the gap, that is probably the most straightforward.

If not, short term policies are worth getting for the interim. They don't cover preexisting. Read the terms.

Just don't go without coverage because of course, Murphy's law.

Topic Author
guptonc06
Posts: 28
Joined: Fri Mar 20, 2015 11:17 am

Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by guptonc06 » Fri Aug 23, 2019 2:54 pm

iasw wrote:
Fri Aug 23, 2019 2:42 pm
How many days will there be between end of work and when you can officially participate in your new plan?

COBRA allows you to backdate enrollment up to 60 days. So, youd have 60 days to elect coverage IF you end up needing it. If not, don't pay.

If that gets you through the gap, that is probably the most straightforward.

If not, short term policies are worth getting for the interim. They don't cover preexisting. Read the terms.

Just don't go without coverage because of course, Murphy's law.
Unfortunately, that 60 days is up for me on 8/31. Start new Job on 9/3. So, not really an option. But thank you, that is good advice that many people do not know.

student
Posts: 4292
Joined: Fri Apr 03, 2015 6:58 am

Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by student » Fri Aug 23, 2019 3:02 pm

guptonc06 wrote:
Fri Aug 23, 2019 2:54 pm
iasw wrote:
Fri Aug 23, 2019 2:42 pm
How many days will there be between end of work and when you can officially participate in your new plan?

COBRA allows you to backdate enrollment up to 60 days. So, youd have 60 days to elect coverage IF you end up needing it. If not, don't pay.

If that gets you through the gap, that is probably the most straightforward.

If not, short term policies are worth getting for the interim. They don't cover preexisting. Read the terms.

Just don't go without coverage because of course, Murphy's law.
Unfortunately, that 60 days is up for me on 8/31. Start new Job on 9/3. So, not really an option. But thank you, that is good advice that many people do not know.
So we are talking about a few days. Take an international trip for 3 days and buy travel health insurance. They do not require you to have health insurance at home. It will cost less than $50.

Topic Author
guptonc06
Posts: 28
Joined: Fri Mar 20, 2015 11:17 am

Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by guptonc06 » Fri Aug 23, 2019 3:08 pm

[/quote]

So we are talking about a few days. Take an international trip for 3 days and buy travel health insurance. They do not require you to have health insurance at home. It will cost less than $50.
[/quote]

I wish. Start new job 9/3, 60 days thereafter.. health insurance from new employer kicks in, so roughly 11/3.

GreenGrowTheDollars
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Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by GreenGrowTheDollars » Fri Aug 23, 2019 3:11 pm

Is your spouse employed? Can you get health insurance through your spouse with better conditions?

Your new employer's health plan looks pretty awful. I hope the rest of the benefits package is better.

A short term plan sounds ideal at the moment...but longer term, a better insurance plan might be worth another job change.

Topic Author
guptonc06
Posts: 28
Joined: Fri Mar 20, 2015 11:17 am

Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by guptonc06 » Fri Aug 23, 2019 3:15 pm

GreenGrowTheDollars wrote:
Fri Aug 23, 2019 3:11 pm
Is your spouse employed? Can you get health insurance through your spouse with better conditions?

Your new employer's health plan looks pretty awful. I hope the rest of the benefits package is better.

A short term plan sounds ideal at the moment...but longer term, a better insurance plan might be worth another job change.
Spouse is employed.. however her company only allows Employee & Child/Children for health insurance. How that is even legal is beyond me? What a cluster.

Completely agree on the job change.. this is just a means to an end. Just taking the job to have a paycheck essentially.

runner540
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Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by runner540 » Fri Aug 23, 2019 3:15 pm

How much is 2 months of COBRA? This is what it's for. Health insurance is what your money's for.

Topic Author
guptonc06
Posts: 28
Joined: Fri Mar 20, 2015 11:17 am

Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by guptonc06 » Fri Aug 23, 2019 3:23 pm

runner540 wrote:
Fri Aug 23, 2019 3:15 pm
How much is 2 months of COBRA? This is what it's for. Health insurance is what your money's for.
Well the Cobra would be for 4 months, from 7/1 to 11/1.. at $580/month.. or $2,320.

runner540
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Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by runner540 » Fri Aug 23, 2019 3:31 pm

guptonc06 wrote:
Fri Aug 23, 2019 3:23 pm
runner540 wrote:
Fri Aug 23, 2019 3:15 pm
How much is 2 months of COBRA? This is what it's for. Health insurance is what your money's for.
Well the Cobra would be for 4 months, from 7/1 to 11/1.. at $580/month.. or $2,320.
That's actually less than I would have thought. If that amount won't impact your ability to pay rent/mortgage or buy food, just do it. Many of us pay that in premiums even with employer subsidy.

megabad
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Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by megabad » Fri Aug 23, 2019 3:35 pm

Ok. Let me throw out a strategy.

Sign up for COBRA now.
You immediately know you will lose coverage so this should open ACA special enrollment.
Enroll in ACA plan for 2 months.
Then go on employer plan.

I suggest this because I severely dislike all of the short term non-ACA plans I have seen. So much so that I think the vast majority of them are basically worthless.

student
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Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by student » Mon Aug 26, 2019 12:46 pm

guptonc06 wrote:
Fri Aug 23, 2019 3:23 pm
runner540 wrote:
Fri Aug 23, 2019 3:15 pm
How much is 2 months of COBRA? This is what it's for. Health insurance is what your money's for.
Well the Cobra would be for 4 months, from 7/1 to 11/1.. at $580/month.. or $2,320.
I would suggest getting it.

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anon_investor
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Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by anon_investor » Mon Aug 26, 2019 12:57 pm

Just get the COBRA, it sounds like you still have this week to enroll. It's only a short term hit, and it sounds like you have the cash to pay for it. A better safe than sorry situation.

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dm200
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Location: Washington DC area

Re: Short Term Health Insurance/Asset protection - Advice Needed

Post by dm200 » Mon Aug 26, 2019 1:33 pm

anon_investor wrote:
Mon Aug 26, 2019 12:57 pm
Just get the COBRA, it sounds like you still have this week to enroll. It's only a short term hit, and it sounds like you have the cash to pay for it. A better safe than sorry situation.
Why take the risk???

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