retzie

I am heading into a new job (yay!) and need to deal with a 2 month gap between my existing health insurance and the new plan kicking in. The two months in question will be January and February, so less than 60 days.

Having read the official rules it seems like I have the following options:

• Take no action, then just enrol in COBRA coverage if needed during these two months (this would involve paying the full premium from the date of the termination of the old plan, but result in no break in coverage).
• Waive COBRA coverage initially, then elect to enrol if it turns out I actually need it (this would involve a pro-rated premium, starting from the election to enrol, rather than the termination of the old plan, but would involve a break in coverage).
• Get short-term coverage on the open market (or marketplace).

Have I understood correctly? If so, is there any reason I should worry about a break in coverage? I am heading into a group plan, so I think it shouldn't make a difference. If I go with either of the first two options, I think my enrolment just needs to be within the election period. Specifically, I don't have to enrol before receiving treatment?

I have no existing health problems or treatments, so this would be for unforeseen circumstances only. Whatever set-up I choose, I don't want to be worrying about putting in a call before being whisked off in an ambulance!

If there are any pitfalls and/or options I haven't listed, please chime in.

Bob

With the new health insurance stuff going on, I don't think there's a need to worry about a break in coverage any more because pre-existing shouldn't be a factor any more.

So personally, I wouldn't worry about it. If you got hit by a bus a day before the new insurance kicks in, the worst you'd have to deal with, apart from the bus, would be pro-rated 2 months worth of COBRA premiums.

md95065

I think that option 1 is your best bet.

Just do nothing, and enroll in COBRA if you need to during the 60 day period.

NatashaB

So you can wait till you (hypothetically, hopefully) break a leg and require coverage, and then sign up to COBRA coverage and it's applied retrospectively? Useful to know.

Bob

Yes, but you've got to pay up the full premium back pay.

NatashaB

Thanks Bob, that's handy to know. At least I know we wouldn't have to pay it unless we actually needed it!

Bob

Aye, it's handy if you know you've only got a couple of months gap potential, bit of a bugger if it's 6 months

md95065

Yes, but this only works for the "election period" (which must be at least 60 days).

http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

sir_eccles

When Bob says full premium that means the amount you used to pay as your premium plus the amount your employer used to pay. Your employer should have given you a COBRA information sheet spelling out these costs, they are usually a bit of a shocker.

NatashaB

Yep, that part I understand. And yes, they were a shock! but at least I know that we wouldn't need to fork out $1500 a month unless we were going to incur significant medical costs.

jackattack

Make sure that you know the time by which you NEED to enroll in COBRA in order to be able to have it at all.

If you miss the first payment deadline, then you can't enroll regardless if you need it. It may be a moot point since perhaps you get a 60 day grace period to sign up, by which time you should be on your new employers plan anyway.

We had the same scenario over this summer but had to pay for COBRA for 3 months before new employer would enroll us. At $1800 per month it was a bit of a shocker.

jeffreyhy

Provided, of course, that given the condition you're in causing you to need the insurance, you are able to do what you need to do to enroll. Might not be able to enroll from a hospital bed, but then again you might not be able to get a bed in a hospital until after enrolling.

Regards, JEff

Giantaxe

If you want to be paranoid about it, fill out the COBRA election forms, write a check for the requisite amount, and have a designated person who'll send them off in the event of your incapacity.

retzie

Thanks for your thoughts, everyone. I'm very suspicious of pretty much every aspect of health insurance here, so I wasn't sure whether to believe that the odds were in my favour for once.

I am as-yet undecided if I am that paranoid, but I'm glad to know how one would proceed! Luckily, my 'designated adult' in my soon-to-be home city is British, so at least he won't laugh at me.