Edward Jones & COBRA - Legal? Standard?

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Jul 23, 2007 2:55 pm

I recently left EDJ.  They had told me all along that I was paying 100% of my insurance premiums (after the intro subsidized period).  $328 per month for a HSA high deductible family plan is the current rate.  Then they hit me with a $560 per month COBRA premium.  When pressed they tell me that they have a SELF insured plan and that now they can charge me the premium AND the cost of claims paid out by the plan.  Is this legal?  Is this standard for COBRA?  On a traditional plan if I understand correctly they charge the premiums to the former employee.  Why is it so screwed up for self insured plans.  Seems like a raw deal.

Jul 23, 2007 4:19 pm

Cobra is always WAY more expensive.

Jul 23, 2007 4:39 pm

Ya but, it is only supposed to be 102% max over the full cost of coverage.  If EDJ tells you that you are paying 100% of the insurance premiums as an IR because you are soooooo well paid, then the cost should only increase by 2%.

Jul 23, 2007 5:33 pm
Dust Bunny:

Ya but, it is only supposed to be 102% max over the full cost of coverage.  If EDJ tells you that you are paying 100% of the insurance premiums as an IR because you are soooooo well paid, then the cost should only increase by 2%.


That's what I thought, but not what is happening. 



COBRA is usually WAY more expensive, but I always thought the reason was because MOST employers pay a huge portion of the premiums while employed.

Jul 23, 2007 5:48 pm

Traditionally, Cobra can't be more than 102% more than the group plan.  I don't understand how it works on self-insured plans.  Is your family healthy?  If so, in many states, individual coverage is cheaper than group coverage.

Jul 23, 2007 6:04 pm
anonymous:

Traditionally, Cobra can't be more than 102% more than the group plan.  I don't understand how it works on self-insured plans.  Is your family healthy?  If so, in many states, individual coverage is cheaper than group coverage.



Family health is fine, but I've already met my out of pocket max for the year so a new deductible doesn't make a lot of sense until January.


Jul 23, 2007 11:28 pm

For all of the Texas reps out there - in Texas individual health plans do NOT cover maternity care, only group plans do that. So, if you are going independent and plan on having a baby in Texas in the next year or so, stick with COBRA from Jones even if it is a little more expensive.