Can anyone help me out with how health insurance works after a layoff? I'm worried about losing my coverage and it’s adding a ton of stress to an already tough situation. I'm not really in a position to not have coverage right now. What options are available to keep things going?
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Is this another round of VERP, or layoff? Didn’t the layoff severance package also offer subsidized health care for a period of time?
I took the VERP in the US back in April. The COBRA premiums I'm paying are between 3-4x what I had been paying when SAP was subsidizing the majority of my premium cost when I was employed. And the premiums for 2025 are even higher.
It is correct that in the US, you are entitled to have access to your employer's plan via COBRA for up to 18 months. Best advice I can give is start shopping now - find yourself a certified health marketplace "navigator" (they are like an insurance broker who specialize in the health marketplace aka Obamacare aka ACA) that you can work with to understand what is best for you. The good news about the ACA is that the premiums are capped as a percentage of your annual income (I believe it's no more than 8.5%). The reason you want to start shopping now is you should target a new plan starting Jan 1, so you have a full year to work toward meeting your deductible. I'm going thru the same thing right now - I want to get off COBRA by EOY and move to Marketplace to greatly reduce my premium costs. Just need to make sure the doctors I use today will accept the Marketplace coverage. That's also where a Navigator can help you. Good luck.
For US impacted employees, Just beware that COBRA is by no means a "cheap" option. You will pay dearly for this coverage.
My advice is to begin contacting various health plans and compare the cost along with the coverage as well as what your deductible would be. COBRA is not your only option.
COBRA. The coverage is identical to what you currently have and the transition is remarkably smooth. You are eligible for it for 18 months... essentially, the coverage you currently have --- company, plan, etc --- is all available via COBRA. But, its expensive as he-l. Depending on your age and years of service, you will get a package and a fair chunk of that will go towards making payments on the premiums.
It su-ks. COBRA makes it somewhat easier... but the entire situation just plain su-ks.
Since you're in the US, you can also look at the ACA, see whats out there via the marketplace. I've heard various things --- expensive, not so bad, etc. I haven't looked at it seriously, but will probably do so in the coming months, just to understand what is out there.
Good luck. And don't stress. Stressing, worrying --- it accomplishes nothing. Put your head down and treat prepping for life after SAP as a job. Make a plan, execute. Its all you can do. If you still work for the company, at least you have a paycheck while you prepare for life after SAP.
Raise a HR ticket. This is what they do. Ask to arrange call and have a HR colleague talk you through it .
In all likelihood the answer is your coverage ends as soon as your employment is terminated and you have to sort yourself out with paying for a new premium.
COBRA. You have to pay the full premium.
I'm in the US.
In which country?