What do we need to do with options that were awarded to us as prior key contributor awards before the company went all RSU? I think I read that they should be exercised within 3 months of termination. Can anyone with more knowledge help me understand? Also, not sure how to deal with Cobra.. I may need surgery soon and am not sure what to say.. my understanding was that Cobra allows my family to stay on the same plan for a period as I cover the premiums but I'm d-mb.. I've never been laid off or fired in like 30 years
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Here’s how COBRA works in accordance with all state laws. It’s on page 3 of our Separation Information Package.
Health Equity is the administrator of our COBRA plan - you can call them at 877-722-2667 - also on page 3.
We will get a COBRA package with all the information we need and enrollment forms. This must be sent to us within 44 days of termination. Then we have 60 days to enroll.
There is going to be a time period where we have to pay out of pocket for any medical expenses while our enrollment is in flight. There’s no way around it and we’ll be reimbursed once we get enrolled
Stock options have an accelerated expiration date - 3 months from termination.
It is my understanding’ that with COBRA you continue all of your existing coverage. You’ll receive the coverage you signed up for in 2024. I would definitely do it because you’ll go broke having a surgery with Obamacare. The Obamacare deductible is $15K and it’s not nearly as good as the insurance we had in any way shape or form. You do have to sign up for it.
RSUs are yours to keep once vested, there is no need to exercise (meaning buy first at the price specified). Stock options have to be exercised once they vest. You can buy/ sell at the same time and depending on the share price on the date you exercise you will make a profit or loss. If you decide to buy and keep, the big risk is if the stock never goes above what you purchased for. It’s a difficult decision and there may be tax implications as well. My advice is to sell and be done with it. Many employees already have high exposure to Schwab stock in their 401k accounts. BTW, RSU purchase has already had taxes withheld. If you want to cash out and sell those, you can claim losses in your tax return.
Thank you, I appreciate it. I was was a little concerned after receiving a UHC update of benefits notice today.. I logged in and saw that there were no messages, but that the plan now shows no limit to out of pocket expenses etc.. very strange. It also showed that I had not contributed towards my deductible even though I have shelled out more than ~ $600 this past week alone.
As for the stock option awards, I will re-read or call the HR hotline tomorrow. Thanks again, and best of luck to you also
Best that you contact the firm for the RSUs and specific information if you cannot find the answer in your paperwork.
Cobra is effective February 1st (if you were let go on 10/30) and you will make that selection in the coming weeks. I don't know if it is the same plan or you get to make new elections, but you will have the option to select coverage and cover the premium. That information is in your packet.