How much premium i would end up paying for me, wife and 3 kids if I elect COBRA. Is such a family option available ? How long we can continue COBRA ? Appreciate your inputs.
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COBRA cost depends on the coverage. The coverage will be the same as you had in your (now terminated) employer's plan, you can't change that. There is a big difference in the costs of various coverages. I had a cheap health insurance plan while at Oracle, and when the COBRA package came, I was shocked by how costly the offered coverage was.
And don't forget about the dental coverage, which is an extra part of the COBRA offering and which you don't have to purchase alongside with the health coverage per se. But being without a dental coverage is not a good idea for everyone.
The truth is that replacing the employer's health insurance with COBRA will result in a serious financial blow for most people.
I'm in excellent health, haven't needed to go to the doctor in over 30 years, but COBRA just for me will be a little over $700, while the cheapest Bronze ACA plan for me will be around $600.
@h3 There is no fraud involved. It's a population that tends to be young (hint: they usually carry textbooks) but there is nothing preventing an older person from becoming eligible too. I am just saying you need to think outside the box when looking for options (and I am not only talking about insurance).
@eg you might be paying $450 a month for nothing. When you need the insurance the most and start filing claims that don't align with the people in your pool you could get dropped if they investigate and find fraud in the application. i.e. you are far older than you claimed. See how much your insurance costs you after this gets out.
I am paying $450/month for my wife and I. I won't tell how but the trick is to get in the same insurance pool with younger, healthy folks who never go to the doctor anyway.
Cobra will be very expensive and AI estimate sounds exactly the ball park figures was thinking too:
With spouse and 3 kids it will be over $3400 for premium, $2600 to $3300 for standard. $2100 to $2500 for the high deductible.
@OP $3200-$3600/mo
Look around there have to be betters ways to get insurance. COBRA is expensive but it is essentially the same coverage that you had before getting laid off. Healthcare.gov isn't as cheap as it used to be since the subsidies ended on 12/31 last year but check there to see what is available. The coverage isn't as good either. Contact your current provider and see what they offer.
Most people aren't realizing this but when they add in healthcare costs on top of your monthly bills the severance pay isn't going to take you very far.
Look at last year W-2. It shows the cost of employer provided medical insurance. COBRA can be extended up to 18 months, and will probably cost 2K+/month in your case.