How does the severance policy handle heath insurance benefits? It used to be that health insurance was provided for the entire sub-pay period. How about now with the lump-sum payment?
7 replies (most recent on top)
I was able to get an Anthem plan (Silver PPO) which was similar to the one I had with the bank. Of course, deductibles were different and my doctors were there. Your state's marketplace website should allow you to find out whether your doctor is in the plan.
It only took me a morning to find a plan and apply as I had to provide a ton of information about my household so that I could be eligible for financial assistance, which is a premium tax credit based on my EXPECTED income for 2025. If I get a job and in 2026 my W2 shows a higher income than what I reported, I would be taxed on that credit.
And in a few days I got some emails requesting additional information about my wife's income and one week later I was told my application was approved. It still took 1 week for Anthem to receive my application from my state's marketplace for me to pay for my 1st and 2nd months of health insurance.
The job market is very slowly recovering, got some interviews but way fewer that what I was expecting with my experience and certifications. Thanks for the good wishes!
@c2+1jmh4kp2f
Extremely useful tips. Thanks. Question, were you and your family able to keep the same Doctors you had or did you have to go to some Witch doctors in the state’s network? How long did it take you to compare, decide and lock in?
I guess it also goes without saying you are still out of work and have no income. Hope you land soon and are better than ever. This bank is Anti-American.
Laid off last year and got my COBRA letter in December, so I'm sharing what my COBRA would cost for me and my wife.
While at BNYM I was paying ~$350/paycheck, roughly $700/month. COBRA letter said that medical insurance only was quoted as $2,100/month!
Do your research. I ended up getting medical insurance from my state's marketplace (was able to get premium tax credits and am paying $240/month) but signed up for COBRA's dental and vision insurance, as prices are pretty much the same as buying yourself/marketplace, but price was locked down for 18 months.
Bottom line: I didn't choose COBRA's medical plan but got dental & vision from them.
Hope this helps.
I confirmed yesterday that the healthcare stipend (up to 20 weeks depending on years of service) can be used for anything. The guy told me to use it for a vacation if I want lol. That being said - it’s going to be taxed heavily. Since my actual termination date is 3/19 my coverage is good through 3/31.
You are never, ever required to take cobra as far as I am aware. Please take great care in comparing what paying the premium out of pocket all yourself is(cobra) vs. plans that are available through the market place in your state with comparable coverage to what you currently have. Sign up on your states marketplace immediately even if you do not enroll in a plan. Research is key here as is timing. Also look into state medicaid. You do not want to pay a higher premium than is necessary for what you need, especially while out of work. Ask questions and take notes.
@ag+1jmh4kp2f That’s great if you’re married!
You are covered thru the end of March. You’ll get a lump sum of 20 weeks worth of what the bank’s portion of your medical plan costs them - it’s to help you fund COBRA coverage for a few months. You come out ahead if you can switch to a spouse’s plan on 4/1 as I’m pretty sure they don’t require you to use COBRA.