Healthcare Decision (Group Policy vs. Invidual for Wife)

[GlockSpock]

In a nutshell, I have been paying for "family" coverage through my employer. My employer covers my costs entirely, and family coverage is availible for $370.34/month pre-tax dollars. So, since I'm in the 15% tax bracket, for the sake of the arguement I'll use 85% of $370.34 for comparying costs.

 

Currently, I'm paying $3,777.468 yearly for my Wife to have coverage. I think last year she probably used $0 benifit of this.

 

I got to thinking (since it is "open enrollment" at my employer this month) that we could find a policy cheaper since it is a group policy at work and thus affected by co-workers and their families.

 

I was told the check with Farm Bureau in Cleveland. They sent me 4 quotes, and I am heavily tempted by "catastrophic) coverage for her with a $5,000 deductible. However, none of the plans meet the requirements of the Affordible Care Act, and thus unless we could qualify for an exemption I believe we would be taxed/penalized 2% of our income. In this scenario, using last year's $20,300 standard deduction, our current taxable income is roughly $32,436. I think I would pay 2% of that, or $648.72 at the end of the year.

 

If I were to make the switch, my plan would be to save-up basically an emergency fund for emergency services for her if needed. Then I would start saving that extra towards a house.

 

So, I have attatched to this what I currently have, and then the four quotes that were sent to me.

 

So, the numbers:

 

Currently, $370.34 monthly pre-tax, would be $314.79 after that amount was taxed in my pocket if I did not have to pay this.

 

My current plan through employer that she has:

 

(can click on images to make them larger)

 

 

The four quotes:

 

 

I am not sure of specifics, but the $53/month major medical coverage quote is very tempting. I would be saving $261.79/month or $3,141.48/year. $648.72 would be taked for the penalty.

 

Total calculated savings ~$2,492.76

 

Maternity coverage is not included in any of these quotes, but I don't know what to think exactly about that. My plan has been to go back to the employer plan once we have kids. Since open enrollment is every year at the same time, I figure that 3 months are the longest until open enrollment.

 

Thoughts? Foolish to consider?

Edited July 9, 2015 by CZ9MM

[raildog]

I had a TRH plane several years ago it was a good plan. My wife had one of the high deductible plans for 1 year thrue her employer. The year before she went to the Doctor 1 time for a check up. That year she was in the hospital twice for several days and went to the Doctor more than she had her whole life we about went broke. With that said is a gamble with insurance save money now to spend it later or spend it now to save it later. That's my $.02

[KahrMan]

Are you on a family plan or employee/spouse plan?  When I offered BCBST to my employees there were 4 options.  I will list them in order of cost: Emp only, Emp/Spouse, Emp/dependents, Family.

The emp/spouse was quite a bit cheaper than the family plan.  If you are on a family plan, see if there is an emp/spouse option.

Edited July 9, 2015 by KahrMan

[GlockSpock]

Are you on a family plan or employee/spouse plan?  When I offered BCBST to my employees there were 4 options.  I will list them in order of cost: Emp only, Emp/Spouse, Emp/dependents, Family.

The emp/spouse was quite a bit cheaper than the family plan.  If you are on a family plan, see if there is an emp/spouse option.

 

Good question, I think the only option is either that they pay for me and nothing else, or they pay for me and 57% of the premium for family coverage and I cover the rest for family.

 

EDIT: Let me put it this way. I have been going to an "insurance meeting" for 3 years now yearly and I have only ever heard of family being optional. I also spoke with HR yesterday about exactly what I am disccusing in this thread and she told me she thought I should drop family coverage and go for catastrophic coverage for my Wife.

Edited July 9, 2015 by CZ9MM

[A.J. Holst]

If you've got the cash, catastrophic or monster deductible policy is a good option...she might get sick.

Or gamble, under ACA you can't be denied for existing conditions, so if she gets "bad" sick, buy insurance then...