Add Spouse to my Health Plan or Pay for Cobra

Aug 28, 2016

  1. chky071
    Offline

    chky071 New Member

    Posts:
    3
    Likes Received:
    0
    State:
    Utah
    I am trying to decide if it is better to add my wife to my health insurance plan or pay Cobra as she is no longer working.

    My wife was a school teacher up until we had our baby. Her current plan (expires on 8/31/2016) is an HSA. We have the option of paying with Cobra for $469.30 per month. Since we just had the baby she has already met her $2,000 deductible.

    My health insurance through work is expensive, my employer does not cover much of the premium. Right now my insurance plan is a traditional plan that covers me and my child (the new baby just born). So my premium right now per month is $148.00, once I add my wife I have to go up to a family plan which will increase my monthly premium to $684.63 per month. That is an increase of $536.63 per month.

    I am estimating that based upon my tax bracket the $536.63 per month will cost me $448.62 net from my paycheck. This is slightly less than what we would be paying for Cobra.

    I don't think we have spent more than the $10,000 in medical expenses to be able to write the Cobra expenses off of our taxes.

    So it looks like we will be money ahead if we add my wife to my health plan. However she has already met her deductible with her current insurance provider. So if she needs any medical treatment between now and the end of the year it would probably cost us less since she has already met her deductible.

    What are your guys thoughts? Should I keep her on her own insurance and pay Cobra or move her over to mine?

    Thanks!
     
    chky071, Aug 28, 2016
    #1
  2. STIBROKER
    Offline

    STIBROKER Like My post and enter the DRAWING,,,, Moderator

    Posts:
    10,462
    Likes Received:
    390
    State:
    Texas

    when is your next open enrollment........
     
  3. chky071
    Offline

    chky071 New Member

    Posts:
    3
    Likes Received:
    0
    State:
    Utah
    My next open enrollment is 11/30/2016
     
    chky071, Aug 28, 2016
    #3
  4. STIBROKER
    Offline

    STIBROKER Like My post and enter the DRAWING,,,, Moderator

    Posts:
    10,462
    Likes Received:
    390
    State:
    Texas
    I say ride the cobra until your open enrollment then reevaluate.....chances are both your group plan and her cobra will be going up next year........
     
  5. FLM2
    Offline

    FLM2 Guru

    Posts:
    3,223
    Likes Received:
    9
    As long as accepting the Cobra doesn't reset the plan deductible (it shouldn't) it's pretty clear that you should accept the Cobra for now-the risk is 4 months of slightly higher premium vs the potential for thousands in extra medical costs.

    Additionally, since her plan is an HSA, it allows you to pay for all of your family out of pocket costs through the HSA (not just hers)-can I assume you have opened an HSA account already? The tax deduction of the HSA contribution would more than compensate for the higher premium
     
    FLM2, Aug 28, 2016
    #5
  6. hockeyday
    Offline

    hockeyday Guru

    Posts:
    630
    Likes Received:
    72
    State:
    Michigan
    don't forget to add your child
     
  7. chky071
    Offline

    chky071 New Member

    Posts:
    3
    Likes Received:
    0
    State:
    Utah
    Thanks for the reminder, but I added the child right after she was born :)
     
    chky071, Aug 28, 2016
    #7
Loading...