How Predictabill gave Tyler peace of mind and could have saved his employer millions during layoffs

Tyler had worked as a software engineer for a Series F tech company in New York for 8 years. The company had grown rapidly to over 1,000 employees. But candidates choosing offers saw the “start-up” as risky. Especially compared to giants like Google or Apple, employing 100,000+.

As a recruiting strategy, Tyler’s employer had offered free, zero-deductible health insurance plans. Tyler and many other employees had chosen this option.  

The rich health insurance turned costly for both Tyler and his employer

Tyler was laid off in December 2023 due to the economic environment and a need to restructure. The company provided a generous severance package, including 3 months of paid COBRA.

If Tyler wanted to continue on COBRA after that, he would have to pay $895 a month while unemployed. Knowing he needed time to prepare for technical interviews, he researched his options. But it left him frustrated and anxious.

Despite the steep costs, Tyler considered staying on COBRA.

“I looked on the New York Health Insurance Marketplace, and the options weren’t much cheaper than the COBRA I was paying for. I couldn't figure out if I was missing something or if it was worth paying a couple $100 more for the better plan that I know really well. I wouldn’t have to change anything, get new info, and mess up something.”

Employees who enroll in COBRA cost the company an average of $18,625 per year. Those with families cost over $50,000 per year. They are also eligible to stay on COBRA for 18 months. With almost 200 employees laid off Tyler’s employer faced a multi-million dollar problem.

Tyler got personalized answers from Predictabill to help him make an informed decision 

Companies can provide their staff with access to Predictabill. This includes laid off employees. Signing up for a free account, they add their medical details and preferred doctors. Predictabill compares all the options and gives simple color-coded recommendations.

Tyler completed the easy onboarding with Predictabill.

“Predictabill confirmed the things that I was having trouble confirming online. There's lots of places that seemed to have the info but didn’t align with my situation.”

Predictabill gave Tyler clarity and saved him $10,740 per year on his health plan

Tyler felt a deep sense of relief that he hadn’t misunderstood his health plan options. Predictabill showed him he was eligible for free subsidized government health care. He also learned how his severance and unemployment pay affected his options.

Qualifying for the free government health plan, Tyler saved $10,740 annually ($12,530 total for the 14 months he was enrolled). This allowed him to travel and enjoy worry-free time off. After returning, he dove into interview prep for a new software engineering role.

Without Predictabill, Tyler would have stayed on COBRA.

Predictabill could have saved Tyler's employer $4.3 million by helping laid off staff

It took Tyler 14 months to find a new job—nearly the full legally required COBRA coverage period. Although COBRA shifts costs to ex-employees, it still would have cost the company close to $22,000. This is in addition to the $12,530 Tyler would have paid personally. 

Tyler's ex-employer didn't use Predictabill. Company-wide, COBRA enrollments could have cost them around $4.3 million.