Skip to main content
No. of Recommendations: 0
I have a shrewd idea that there's little chance of finagling as good a deal as employer provided health insurance provides. You only need to ask someone who's using COBRA to provide medical coverage. Not only do you get the tax assisted/employer susidy savings, but large group plans are a good deal cheaper than the comparable private policy.

Note the word "comparable"..all insurance coverage is notthe same. Plan exclusions are very rarely printed in the same size print as the boast of "HUGE NEGOTIATED SAVINGS".

I think that you make a good point in terms of obtaining comparible insurance.....But, it has been my experience that the large company's insurance covers a lot of things that for my own personal experience was not of much use to me.....paying for mental health doctor visits and chiropractic visits come to mind. Coverage that I never used, so to pay for them was excessive for me. I have also found that company's policies basically covered the individual, you had to pay extra for your spouse and maybe a little extra for the first child. The companies I worked for had no additional premium payment whether a family had 2 children or 10 children. Obviously, large families were being subsidised by the individuals, couples and perhaps small families....once again coverage that did not benefit me.

As per COBRA, I have some experience here. Both my wife and I had the option of going on COBRA from our previous employer. We found the insurance expensive. It didn't appear to me that the group rates were all that great...perhaps for some of the reasons I stated above. When we took out our high deductable policy and opened our MSA our premiums went from $421/mon on COBRA to $479/mon for HiDeductable/MSA contibution. Now granted that this was not equivalent coverage but on the positive side, this is before tax dollars (for MSA) and the MSA is tax deductable (ie reduces AGI) and if the MSA is not used at the end of the year then I get to keep that money in my MSA for use in the future rather than the insurance company getting to keep it.

You bring up good points, which just points out that each individual must investigate his own situation and make a decision that meets his needs to his satisfaction.

By the way, when we went on COBRA, I was surprised at how expensive it was. I expected it to be more cost effective. The company I had worked for (>20 years) had been scaling back benefits to save money and I have a feeling that they were only covering the employee. The additional family members were to be paid for by the employee.....I feel they cut back the subsidies significantly over the years to keep their health costs down. YMMV.

Thanks for the input.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.