There's Always Next Year

Blue Shield Silver is the closest to what we have now,
and the net cost through Covered California will be half
of what we will pay next year.

The open enrollment period on my retiree health plan expires today, October 25th, when I have to decide whether to re-up for 2014 or take my chances on the California Obamacare exchange, Covered California. If we do choose Obamacare, however, we can't go back to our old retiree plan...ever.

On the one hand I can pay over $1,000 per month--my share of the cost, with my former employer kicking in a smaller amount--or pay a lot less through Covered California, provided I am willing to do or believe the following:

1) Manage our household income to be below four times the poverty rate (in our case that means capping it at slightly less than $79,000). This will enable us to a) limit the premiums to 9.5% (or less) of our income and b) receive a tax subsidy.

2) The extensive personal data that we will be entering into Covered California is secure.

3) The benefits and costs from the insurance company that we select are as described on the website.

The decision isn't close. We will stay on the insurance plan that we know, though we will pay thousands of dollars more. It's a matter of risk, but most of all it's a matter of trust---the fact that we trust health insurance companies more than the government to deliver on promises is a terrible indictment of our current system.

And there's always next year to change our mind. I'll be happy to be proven wrong. © 2013 Stephen Yuen