The Money Mustache Community

General Discussion => Welcome and General Discussion => Topic started by: coacheichenlaub on May 28, 2016, 07:00:13 PM

Title: Health insurance switch while still employed?
Post by: coacheichenlaub on May 28, 2016, 07:00:13 PM
Good evening Mustachians!
All of you rock and I know MMM has written about his health insurance rate being very low on the main site and I was wondering if anyone in here knew if it were legal and wise to withdraw from an employer based health insurance to go directly to a provider on ehealthinsurance?  Has anyone else done this on this board?
Title: Re: Health insurance switch while still employed?
Post by: Paul der Krake on May 28, 2016, 07:14:00 PM
It certainly is legal to shop as a private individual. However, considering that you most likely wouldn't qualify for ACA subsidies since you have coverage at work, the chances of you finding something competitive with your employer-subsidized plan are next to 0.
Title: Re: Health insurance switch while still employed?
Post by: coacheichenlaub on May 28, 2016, 07:36:33 PM
From what I've found these options seem better.  Where I work...those who choose the health insurance get it free no matter what so you can imagine what kind of incentive they have to find the best deal.
Title: Re: Health insurance switch while still employed?
Post by: forummm on May 29, 2016, 01:15:38 PM
Good evening Mustachians!
All of you rock and I know MMM has written about his health insurance rate being very low on the main site and I was wondering if anyone in here knew if it were legal and wise to withdraw from an employer based health insurance to go directly to a provider on ehealthinsurance?  Has anyone else done this on this board?

I don't know anything about ehealthinsurance. But be careful. There are lots of places that will sell something that they call insurance, but that isn't really full coverage. What you want is something that meets the requirement for "minimum essential coverage" under the law. Any plan you get at healthcare.gov definitely meets that requirement. If you buy something elsewhere, buyer beware. I don't know why you'd want to look elsewhere honestly. The plans sold elsewhere are less likely to be financially competitive with other plans that have similar benefit levels, and will add some kind of commission to the cost to pay the broker.
Title: Re: Health insurance switch while still employed?
Post by: Cassie on May 29, 2016, 01:46:14 PM
I looked because as a retiree ours is so expensive but we get caught in the trap that it isn't for me alone but just when we add my spouse. So no help with premiums for us.  It was more expensive to pay for our own premium then use my state previous employer at 10k /year.  I doubt you can find a better deal then your own employer.  I tried really hard.
Title: Re: Health insurance switch while still employed?
Post by: iris lily on May 29, 2016, 01:51:09 PM
It f you are under 30, do not use health care services, and have a big asset base from which to draw (and don't mind the risk) check into high deductible catastrophic insurance.

The ACA left that remnant of sensible coverage to the under 30 crowd. For everyone else it is illegal.
Title: Re: Health insurance switch while still employed?
Post by: RentSeeking on May 31, 2016, 01:12:10 PM
It f you are under 30, do not use health care services, and have a big asset base from which to draw (and don't mind the risk) check into high deductible insurance.

The ACA left that remnant of sensible coverage to the under 30 crowd. For everyone else it is illegal.

... huh? There are no age restrictions on a HDHP under the PPACA.
Title: Re: Health insurance switch while still employed?
Post by: iris lily on May 31, 2016, 01:53:17 PM
It f you are under 30, do not use health care services, and have a big asset base from which to draw (and don't mind the risk) check into high deductible insurance.

The ACA left that remnant of sensible coverage to the under 30 crowd. For everyone else it is illegal.

... huh? There are no age restrictions on a HDHP under the PPACA.
I mean "catastrophic" plans.

If you are talking about "high deductible" as $6,850 then I dont cnsider that very high, but thats me.
Title: Re: Health insurance switch while still employed?
Post by: Beriberi on May 31, 2016, 03:19:47 PM
While there are still health plans that are called "catastrophic", under the ACA they bear little resemblance to historical catastrophic plans. They still have the maximum out of pocket capped at $6,850 and cover preventative care without a fee.  In general, they are a terrible deal.  They are not eligible for subsidies.  Most people can find a less expensive bronze option that will have better coverage.

http://health.usnews.com/health-news/health-insurance/articles/2014/11/14/compare-the-cheapest-health-insurance-plans-bronze-vs-catastrophic

To the OP, almost all employers subsidize coverage.  You are unlikely to find unsubsidized coverage at a lower price. It is legal to have any kind of insurance that meets the "minimum essential coverage."
Title: Re: Health insurance switch while still employed?
Post by: lthenderson on May 31, 2016, 04:03:50 PM
Where I work...those who choose the health insurance get it free no matter what so you can imagine what kind of incentive they have to find the best deal.

Nothing is free especially when it comes to health insurance. Somewhere somebody is paying premiums for their health insurance.
Title: Re: Health insurance switch while still employed?
Post by: iris lily on May 31, 2016, 09:48:09 PM
While there are still health plans that are called "catastrophic", under the ACA they bear little resemblance to historical catastrophic plans. They still have the maximum out of pocket capped at $6,850 and cover preventative care without a fee.  In general, they are a terrible deal.  They are not eligible for subsidies.  Most people can find a less expensive bronze option that will have better coverage.

http://health.usnews.com/health-news/health-insurance/articles/2014/11/14/compare-the-cheapest-health-insurance-plans-bronze-vs-catastrophic

To the OP, almost all employers subsidize coverage.  You are unlikely to find unsubsidized coverage at a lower price. It is legal to have any kind of insurance that meets the "minimum essential coverage."
Ok, thank you. I didnt know that ACA nomenclature "catastrophic" didnt really mean catastrophic as I knew it.

I just know that when the ACA talks about under the 30 crowd they seem  to have an option that I as an old fart dont have, but now I see that they dont.
Title: Re: Health insurance switch while still employed?
Post by: coacheichenlaub on June 01, 2016, 11:18:02 AM
thank you all so much