negotiate health care after retirement?

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cudavid
Posts: 13
Joined: Thu Feb 14, 2019 7:57 pm

negotiate health care after retirement?

Post by cudavid »

work for 100 ppl co, retiring soon at 60, they need me, and expect they will want security of being able to contact me, health care is cheap at present
Wondering if I can retire, and pay co to stay on plan and pay them every month? not ever discussed at work that i am aware of.
I see FMLA is max 12 weeks, so what about sabbatical, perhaps get me a year, I agree to assist, they allow health care?
legal, possible, am I off base even thinking?
thank you
MikeG62
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Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: negotiate health care after retirement?

Post by MikeG62 »

Might depend on how their plan document is written (who is eligible to participate). I doubt non-employees will be permitted, but I could be wrong.

COBRA would certainly be an option for 18 months (I believe that is the time period for COBRA).

Report back if you find otherwise.
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galawdawg
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Joined: Thu Dec 14, 2017 12:59 pm
Location: Georgia

Re: negotiate health care after retirement?

Post by galawdawg »

Doesn't hurt to ask. IANYL, but I am unaware of any laws that would prohibit your company from keeping you on payroll and providing you health coverage at employee rates. You might discuss with them a contract that provides for that in exchange for a certain number of included base hours per month as a "consultant" with an hourly rate for hours that exceed what is required under the contract.

Unless you have a very, very valuable, unique, and difficult to replace skill set, you may find it difficult to convince the company to agree to pay their portion of employee coverage in exchange for you simply agreeing to "be reachable".

I'm assuming your company doesn't otherwise provide retiree health coverage? What about coverage under your wife's retiree health plan that you mentioned in a previous post? Have you also explored your options for health coverage elsewhere, such as ACA perhaps with a subsidy if eligible?
davemanjam
Posts: 41
Joined: Thu Aug 13, 2020 11:02 am

Re: negotiate health care after retirement?

Post by davemanjam »

Cobra is available for 18 months. In very limited circumstances longer.
But with Cobra you pay the entire premium, of which your employer likely paid a portion. So it will be relatively expensive to what you might be used to paying.

I would discuss with the companies HR or whoever manages that.
You need to think of what you might want to commit to for this benefit...working x hours per week remotely/in person. Being on call. etc etc.
Also you need to think of how this might impact Cobra if you were counting on that option.
tibbitts
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Joined: Tue Feb 27, 2007 6:50 pm

Re: negotiate health care after retirement?

Post by tibbitts »

cudavid wrote: Wed Oct 07, 2020 7:53 am work for 100 ppl co, retiring soon at 60, they need me, and expect they will want security of being able to contact me, health care is cheap at present
Wondering if I can retire, and pay co to stay on plan and pay them every month? not ever discussed at work that i am aware of.
I see FMLA is max 12 weeks, so what about sabbatical, perhaps get me a year, I agree to assist, they allow health care?
legal, possible, am I off base even thinking?
thank you
You get cobra, so I assume you are asking if they will pay for it, as in subsidize as they do for employees. I believe you would have to continue as an employee; ordinarily a business health care policy (at least the one I obtained) would require that. I don't know that it was a law but it was a requirement of the policy. Whether they would arrange terms for employment that would fit your plans probably none of us can say.

With 100 people probably more things are possible than with a megacorp, although just from my experience, thinking they will want to contact you might be misguided. I lost the illusion of being difficult to replace about 35 years ago, including in similar-sized organizations. I would expect they'd give you a little send-off and you'd leave on good terms with everyone, and then if they had a question like "where did you leave that key to the cabinet?" you wouldn't try to negotiate healthcare in exchange for the answer. Ultimately if they needed you that much, somebody at the company didn't prepare for your retirement very well. It's not like you just left unannounced and didn't have plenty of time to transition.
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8foot7
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Joined: Mon Jan 05, 2015 7:29 pm

Re: negotiate health care after retirement?

Post by 8foot7 »

It's almost certainly not illegal, but most plan documents are written in a way that forbids this type of arrangement - there is typically an eligibility requirement on the part of all who partake in the plan in that they must work for a certain number of hours to be eligible to be covered. Generally there are audit requirements for this, payroll records and whatnot. Every plan is different but my strong suspicion is that you won't be able to pull this off without still being on payroll.
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