Thursday, February 24, 2011

COBRA vs. G.I. Joe!!! (Loved that cartoon...)

Some may know, I sucked it up at Starbucks for 16 months to rebuild nationwide. (2008-2009 Divorce + Economy = Ass Kicking...)

I've quit, and I got my COBRA paperwork.

Remember, I mentioned that Starbucks self-insures, meaning, they pay an insurance company to administer the benefits, but keep the cash reserves to pay claims unto themselves. Most big corporations do this.

(IMHO: If Obamacare stays, they'll stop, bc it's cheaper to do so...) If I were to purchase the same level of benefits on the open market, $660/month.

My end date is 2.28.11. I have until 5.5.11 to call Starbucks and elect COBRA. My cost would be $307/month. That's less than half of the open market rate.

(Self Insuring allows Starbucks to pick and choose benefits, and control costs, better than an insurance company can, because they're not pinned down to specific state laws....nice, huh?)

Now, that's over 60 days to make a decision. If I get hurt/sick before then, I just elect COBRA, pay the monthly, and boom, I have insurance.

If nothing happens for that time period, I do....Nothing.

Nothing...It's like having free insurance, I only have to pay if I get hurt/sick.

(This is EXACTLY what will happen if insurance companies are forced to take all comers. People will wait to be hurt/sick BEFORE they buy insurance.)

I'm a freaking insurance agent/broker. I recco this strategy to clients, and I do it myself.

Remember, "Knowing is half the battle..."

G.I. Joe!!!!

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