by Guest » Fri Feb 03, 2012 03:38 pm
I have group health insurance through my employer and I am planning to quit my job next month. Will I have to avail COBRA coverage? I hear its very expensive. Can I go for private health insurance? I think I can afford it.
Posted: Sun Feb 05, 2012 11:21 pm Post Subject:
COBRA is not a type of insurance. It is the law that describes your right to continue group health insurance at the group rate for up to 18 months after termination of employment. If you think the cost is expensive, it is because you will be paying 100% of what the cost of the plan is, instead of just the portion your employer was not paying. Individual insurance may be less costly, but the level of benefits is likely to be much lower, too. You will have 60 days from the date of termination to make a decision to elect COBRA continuation. Use that time to find out what the cost and benefits of an individual plan will be and make the decision that's best for you.
Posted: Mon Feb 06, 2012 12:19 pm Post Subject:
Are you planning on quitting and staying unemployed for a considerable length of time? If yes, then COBRA is a pretty good option. You can explore private healthcare plans while you are under COBRA. If you are just going to be 'in-between' jobs for a very short period of time, your new employer should include you in their group plan. Just remember that there shouldn't be any significant break in your health coverage, which is, 63 days.
Posted: Wed Feb 15, 2012 06:24 am Post Subject:
your new employer should include you in their group plan. Just remember that there shouldn't be any significant break in your health coverage, which is, 63 days.
Now you've gone and confused the issue by bringing in HIPAA.
Continuation of a former employer's group health plan courtesy of COBRA must be exercised within 60 days of the qualifying event or it is forever lost (under most circumstances).
Eligibility for a new employer's group health plan under a HIPAA certificate of creditable coverage requires that there not be a "break in service" of more than 62 days. HIPAA does not confer a right to immediate coverage under the new employer's group health plan, it only provides for coverage with no preexisting condition exclusion (to the extent that a person has already satisfied the required number of months of exclusion under previous coverage -- a maximum of 18 months).
The new employee must still satisfy any required probationary period, which can be up to 12 months under ERISA regulations.
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