Job change + high healthcare costs = pay deductible twice?

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simplesimon
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Job change + high healthcare costs = pay deductible twice?

Post by simplesimon » Tue Nov 05, 2019 11:42 am

Someone I know is switching jobs in the middle of next year and is asking if he has to pay deductibles twice on health insurance since he has a family member that requires expensive care. Has anybody been in this situation? Did you just bite the bullet or is there some way not to pay twice? I think the answer is yes, he needs to pay twice, but I just wanted to check. The health insurance companies are not the same, if that matters.

Thanks in advance!

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cheese_breath
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Re: Job change + high healthcare costs = pay deductible twice?

Post by cheese_breath » Tue Nov 05, 2019 11:50 am

Yes, he pays twice. Once for each company.
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anon_investor
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Re: Job change + high healthcare costs = pay deductible twice?

Post by anon_investor » Tue Nov 05, 2019 11:54 am

I would assume he would have to pay twice, but I would call the insurance company to ask, maybe there is a way to get some credit for the deductible paid with the other company. Never hurts to ask, worst they can say is no.

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Watty
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Re: Job change + high healthcare costs = pay deductible twice?

Post by Watty » Tue Nov 05, 2019 11:58 am

They may also need to switch doctors to find new in-network doctors so they should be sure to research that.

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Re: Job change + high healthcare costs = pay deductible twice?

Post by simplesimon » Tue Nov 05, 2019 12:25 pm

Watty wrote:
Tue Nov 05, 2019 11:58 am
They may also need to switch doctors to find new in-network doctors so they should be sure to research that.
It sounds like this is covered. One big difference is that the new plan is HMO vs previously it was PPO.

psychoslowmatic
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Re: Job change + high healthcare costs = pay deductible twice?

Post by psychoslowmatic » Tue Nov 05, 2019 12:29 pm

No idea if this is right, but would taking COBRA coverage through the old company through the end of the year avoid repaying the deductible?

ILnative
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Re: Job change + high healthcare costs = pay deductible twice?

Post by ILnative » Tue Nov 05, 2019 12:49 pm

Deleted - irrelevant one off anecdotal experience that was not helping the discussion. My apologies
Last edited by ILnative on Fri Nov 08, 2019 9:48 am, edited 1 time in total.

runner3081
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Re: Job change + high healthcare costs = pay deductible twice?

Post by runner3081 » Tue Nov 05, 2019 1:10 pm

psychoslowmatic wrote:
Tue Nov 05, 2019 12:29 pm
No idea if this is right, but would taking COBRA coverage through the old company through the end of the year avoid repaying the deductible?
Yes, it would.

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Re: Job change + high healthcare costs = pay deductible twice?

Post by simplesimon » Tue Nov 05, 2019 1:24 pm

runner3081 wrote:
Tue Nov 05, 2019 1:10 pm
psychoslowmatic wrote:
Tue Nov 05, 2019 12:29 pm
No idea if this is right, but would taking COBRA coverage through the old company through the end of the year avoid repaying the deductible?
Yes, it would.
Isn't COBRA very expensive? Cost likely more than the deductible?

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Re: Job change + high healthcare costs = pay deductible twice?

Post by user5027 » Tue Nov 05, 2019 10:19 pm

simplesimon wrote:
Tue Nov 05, 2019 1:24 pm
Isn't COBRA very expensive? Cost likely more than the deductible?
COBRA is usually 102% of the current premium (employer + employee portions). Depends on how good (Cadillac or Volkswagen) the plan is.

If you waive your new employer's coverage to stay on COBRA, make sure you can go on the employer's plan when COBRA runs out. You may have to wait for the annual enrollment period. All plans do not use the same start/end dates.

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Re: Job change + high healthcare costs = pay deductible twice?

Post by simplesimon » Wed Nov 06, 2019 4:18 pm

ILnative wrote:
Tue Nov 05, 2019 12:49 pm
If he is moving from one large health insurer to another - it is pretty standard practice to allow a "deductible carryover" or at least the ability to request one. When I moved one of my clients to a PEO midyear - some of the employees who were paying for their own health insurance purchased off the open market were able to get UHC to agree to a "deductible carryover" for what they had already paid Anthem that year. Once again - this was between very large carriers and I believe the policies were somewhat similar (High deductible policies). YMMV but please have him ask - don't assume he has to pay twice.
Thank you. What is the incentive for the carrier to allow this?

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Re: Job change + high healthcare costs = pay deductible twice?

Post by Big Dog » Wed Nov 06, 2019 4:41 pm

ILnative wrote:
Tue Nov 05, 2019 12:49 pm
If he is moving from one large health insurer to another - it is pretty standard practice to allow a "deductible carryover" or at least the ability to request one. When I moved one of my clients to a PEO midyear - some of the employees who were paying for their own health insurance purchased off the open market were able to get UHC to agree to a "deductible carryover" for what they had already paid Anthem that year. Once again - this was between very large carriers and I believe the policies were somewhat similar (High deductible policies). YMMV but please have him ask - don't assume he has to pay twice.
A company changing health care plans and insurers under the direction of HR is much different than someone quitting and going down the street to work for a competitor. There is no chance that new carrier will care about prior plan. None.

Good news is that HMO's can have lower deductibles to meet.

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Re: Job change + high healthcare costs = pay deductible twice?

Post by simplesimon » Thu Nov 07, 2019 1:20 pm

Big Dog wrote:
Wed Nov 06, 2019 4:41 pm
ILnative wrote:
Tue Nov 05, 2019 12:49 pm
If he is moving from one large health insurer to another - it is pretty standard practice to allow a "deductible carryover" or at least the ability to request one. When I moved one of my clients to a PEO midyear - some of the employees who were paying for their own health insurance purchased off the open market were able to get UHC to agree to a "deductible carryover" for what they had already paid Anthem that year. Once again - this was between very large carriers and I believe the policies were somewhat similar (High deductible policies). YMMV but please have him ask - don't assume he has to pay twice.
A company changing health care plans and insurers under the direction of HR is much different than someone quitting and going down the street to work for a competitor. There is no chance that new carrier will care about prior plan. None.

Good news is that HMO's can have lower deductibles to meet.
How likely do you think it is to avoid paying twice if the insurer is the same for both employers?

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Re: Job change + high healthcare costs = pay deductible twice?

Post by capwrmt » Thu Nov 07, 2019 1:26 pm

ZERO. Even if the insurer is the same, the employer plans are different with different risk ratings, etc.

I've worked in Health Insurance consulting for the largest payers in the U.S. a and none of them have the capabilities to do so. Even if they did, there is simply no incentive to do so. I think there's also government regulations associated with this as well.

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Re: Job change + high healthcare costs = pay deductible twice?

Post by Jack FFR1846 » Thu Nov 07, 2019 2:04 pm

If the cost for paying without using insurance is less than the deductible, then do that. Also fund a health care flexible spending account to the maximum. Here's why. You'd get no help from insurance since you're in the deductible area. You could very well negotiate a lower payment for paying immediately out of pocket. Now, submit this bill for your flexible spending. Since you're not going to work for the company the entire year, you don't pay the entire amount in. BUT...you do get to expense out the entire amount.

Example...say your deductible is $5000. Your flex spending account (using this year's numbers) is $2650. The medical procedure is $3500. You negotiate the bill to $2650. Pay that $2650. Submit to flex spending and get $2650 back. Say you leave at the end of January and pay in one full month (1/12) of flex spending or $220.83. So your actual cost for this procedure is $220.83. I'm ignoring the tax benefit of that $220 being pre tax.
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Re: Job change + high healthcare costs = pay deductible twice?

Post by simplesimon » Thu Nov 07, 2019 2:16 pm

Jack FFR1846 wrote:
Thu Nov 07, 2019 2:04 pm
If the cost for paying without using insurance is less than the deductible, then do that. Also fund a health care flexible spending account to the maximum. Here's why. You'd get no help from insurance since you're in the deductible area. You could very well negotiate a lower payment for paying immediately out of pocket. Now, submit this bill for your flexible spending. Since you're not going to work for the company the entire year, you don't pay the entire amount in. BUT...you do get to expense out the entire amount.

Example...say your deductible is $5000. Your flex spending account (using this year's numbers) is $2650. The medical procedure is $3500. You negotiate the bill to $2650. Pay that $2650. Submit to flex spending and get $2650 back. Say you leave at the end of January and pay in one full month (1/12) of flex spending or $220.83. So your actual cost for this procedure is $220.83. I'm ignoring the tax benefit of that $220 being pre tax.
I'm sorry, I don't quite follow.

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Re: Job change + high healthcare costs = pay deductible twice?

Post by niceguy7376 » Thu Nov 07, 2019 2:21 pm

ILnative wrote:
Tue Nov 05, 2019 12:49 pm
If he is moving from one large health insurer to another - it is pretty standard practice to allow a "deductible carryover" or at least the ability to request one.
I have never heard of health insurers saying "ok, you already paid 4k to other insurance. we will cover after you pay the remaining 1K with our plan".

I have been facing this issue now. My current contract assignment ended (Corp to Corp) and some new contract openings are being told as W2 jobs (not salary and benefits but pure hourly rate). So if i go on W2 with them and pay the full cost of health ins and the assignment ends in mid year, I am left on my own in same scenario.

idunno246
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Re: Job change + high healthcare costs = pay deductible twice?

Post by idunno246 » Thu Nov 07, 2019 2:38 pm

depending on how in demand the job is, another option could be to ask for a signing bonus at the new company to cover the extra deductible

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