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Health insurance and COBRA

Old 07-15-2012, 01:44 PM
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Default Health insurance and COBRA

Changed jobs, and therefore ended up without health insurance coverage from 6/30 until 8/1 (old job stops health insurance last day of the month, new job starts first day of the month following the hire)

COBRA is $870 (for my two kids and me), and I have 60 days to decide whether to sign up for it or not (will cover me retroactively if I get it)

If I do need to file a health insurance claim tomorrow, I can sign up for COBRA and it will cover me.

So.. If I (nor my kids) don't have any need to file a medical insurance claim for this period of time (1 month) why should I pay for COBRA?

If there is/are serious health problem later on, can the insurance companies give me any grief because I haven't had continuous coverage (1 month gap) and call it a pre-existing condition or some other excuse? Does Obamacare come into play on this question?

Thanks!!

Last edited by aa331; 07-15-2012 at 02:37 PM.
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Old 07-15-2012, 02:57 PM
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Originally Posted by aa331 View Post
Changed jobs, and therefore ended up without health insurance coverage from 6/30 until 8/1 (old job stops health insurance last day of the month, new job starts first day of the month following the hire)

COBRA is $870 (for my two kids and me), and I have 60 days to decide whether to sign up for it or not (will cover me retroactively if I get it)

If I do need to file a health insurance claim tomorrow, I can sign up for COBRA and it will cover me.

So.. If I (nor my kids) don't have any need to file a medical insurance claim for this period of time (1 month) why should I pay for COBRA?

If there is/are serious health problem later on, can the insurance companies give me any grief because I haven't had continuous coverage (1 month gap) and call it a pre-existing condition or some other excuse? Does Obamacare come into play on this question?

Thanks!!
If you wish to have any heathcare claim during the period from June 30 through Aug 1 you will need to have paid for coverage. (i.e-purchased the COBRA insurance)

I highly advise you make sure WHEN you are actually covered by the heath insurance of your new job. Some companies may cover people day 1 of employment. Others don't cover you until you receive your first paycheck (or complete the first pay period) I work for the Feds and they make a point of saying you are not officially covered until the end of the first pay period you are employed. Then you are fully covered.

Therefore, double check the coverage date for your new coverage AND if there will be exclusions for pre-existing coverage for you or any family member. (Unlikely--but check) Pre existing conditions exclusions apply for anything an insurance company wishes to identify.

Usually, the new company does not care about or consider lapses in coverage prior to employment. Group insurance policies usually are purchased by companies so any new employee can be covered regardless of pre existing conditions.

You appear to have an opportunity to save $870 by waiting until you are covered by the new company. Better fill any and all prescriptions, see any doctors, have any care, prior to June 30. After midnight that day your current insurance won't cover you unless you eventually purchase the COBRA.

I suspect you may have to incur a new deductable with the new company and their insurance company. That's the cost of changing jobs.

One final aspect of COBRA laws that are confusing. Once you have new coverage, you are no longer able to purchase COBRA from your former employer. (The original company can return your premium and say they don't have to cover you once you are covered under someone else's plan)
So it's likely you will be unable to purchase both, and stick expenses for the new deductible under the old plan.

Confusing isn't it?
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Old 07-16-2012, 04:00 AM
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Thank you
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