What is best option for in-between job health insurance?

[StephMK]

DH is changing jobs and there will be a 30 day lapse before his new job's insurance picks up. The policy also covers our 3 kids, I have my own through my job.

He has gotten the COBRA quote and as I knew it would be, it's pretty expensive. I have done a little research and know some say, don't pay unless you need it, but that makes me nervous. Would that really work if someone truly came up? The other option is to get a short term policy somewhere else. I have a quote for pretty cheap for more of a major medical plan for that month. We don't have any appt. scheduled and will make sure their meds are filled before February.

Is there anything else I need to know or consider? Looking for advice or experiences on what others have done. I do have some contacts in health insurance but won't be able to call them until next week.

 

[Lamping3]

I switched jobs about 2 years ago. I sucked it up and paid for the COBRA. It was for DH, me, and our 2 girls. It was $1200 ish for 4 weeks and we ended up needing it for 6 weeks until my new jobs insurance started. I had to work a full calendar month and I started in the middle of the previous month. I also had to pay the 2nd 4 week period all at once and got a refund for the remaining once I had proof that my new coverage kicked in. Has he already done the negotiating with his new job? I ended up negotiating a sign on bonus that helped lessen the sting.

I was always told that you need continuing coverage if you have a pre-existing condition or your new insurance could deny coverage later on that condition.

My DH has epilepsy and has had issues with clots in his eye just a year prior to the job switch. Both DDs are young and get sick quite a bit. That alone I wanted peace of mind in having everything in order. If I would've not been married , no kids and 10 years younger I would've taken my chances with no insurance but it sucks sometimes to be a responsible adult.

 

[Sadie22]

https://www.healthcare.gov/health-care-law-protections/pre-existing-conditions/

 

[danygirl]

we have done the cobra dance before. Honestly, you have 60 days to sign up and the coverage is retro.
One time DD broke her ankle while we were in between coverage - I called the cobra folks and paid my bill by cc as soon as we got home from the doctor!

 

[meriface11]

As long as you are within the enrollment period for COBRA, you can elect.

Having a gap in coverage used to leave you open to your new employer denying coverage for a preexisting condition, but I believe that's no longer and issue under ACA.

 

[marlynnp]

DH is changing jobs and there will be a 30 day lapse before his new job's insurance picks up. The policy also covers our 3 kids, I have my own through my job.

He has gotten the COBRA quote and as I knew it would be, it's pretty expensive. I have done a little research and know some say, don't pay unless you need it, but that makes me nervous. Would that really work if someone truly came up? The other option is to get a short term policy somewhere else. I have a quote for pretty cheap for more of a major medical plan for that month. We don't have any appt. scheduled and will make sure their meds are filled before February.

Is there anything else I need to know or consider? Looking for advice or experiences on what others have done. I do have some contacts in health insurance but won't be able to call them until next week.

Yes, that really works.
Do NOT decline the COBRA coverage until his new insurance is in effect. You have 60 days to elect the COBRA coverage -- only do so if something happens that will cost more than the premium.

 

[drinkme]

We've gone through this before. For pre-existing conditions you have to be without insurance coverage for over 60 days for that to kick in. If you go 61+ days with no insurance than your new insurance can make you wait 18 months to cover you on specific things.

Anyway, you are only going 30 days so you don't have to worry about that. I would just not pick up any insurance for that month & just enroll in the cobra if you need it. If you do decide to pick up insurance for that month then make sure you do sign up very early. I believe the new "rule" is your insurance will kick in the first of the month after you sign up but you have to be signed up by the 15th (double check this fact).

 

[lockedoutlogic]

As long as you are within the enrollment period for COBRA, you can elect.

Having a gap in coverage used to leave you open to your new employer denying coverage for a preexisting condition, but I believe that's no longer and issue under ACA.

100% correct about cobra and the provision of the ACA...

Those are not "minor" things in term of American law...they should be recognized for how valuable they are...but are often scorned. Sad...really

 

[Marionnette]

100% correct about cobra and the provision of the ACA...

Those are not "minor" things in term of American law...they should be recognized for how valuable they are...but are often scorned. Sad...really

This thread can be helpful for people in the OP's situation and we don't want to get it closed because someone decided to take an opportunity to turn it into an Obamacare debate.

To the OP: Adding your family to your insurance is a possibility since this is a life-changing event. But the coverage would not be immediate. It would cover you starting next month. The same might be true with the other insurance that you're looking at. There are "temporary" insurance plans that cover only catastrophic events and are non-ACA-compliant. They will cover you immediately and are less expensive than COBRA. But they are expensive in terms of the what you get in return for your money. As others have said, it is more affordable to wait on COBRA and add it only if it turns out that you need it. Since plans differ from one state to the next, you will have to do a google search if you're interested in the temporary coverages.

 

[lockedoutlogic]

I have no debate...the laws in this case could be helpful to avoid cost/provide peace of mind to the original poster.

Especially if you refer to them by their real names...not politicized monikers.

There is no debate.

 

[MAO]

I agree with lockedoutlogic - there is no debate. The original poster wanted to know if there was anything else they needed to know or consider. The fact is that American law changed recently and prior experience is less instructive for current situations than it might be.

I would urge the OP to contact their contacts in the health insurance field, but I also would encourage them to do some reading at the healthcare.gov website. For example, I found that they could apply for coverage up to 60 days prior to the employee ending his job, which might give some extra peace of mind to the family knowing that was already in place. And, of course, "Health insurance companies can't refuse to cover you or charge you more just because you have a pre-existing condition." No limitations on this statement. Of course, this website is geared towards someone looking for long-term insurance needs which the OP is not looking for -- just a 30 day policy, it seems. But having the vocabulary and some knowledge of current law may be useful when talking to the healthcare folks.

Good luck!

 

[StephMK]

Thanks everyone. That's good to know about the pre-existing conditions because 2 have ongoing issues. I was reading more about the short term temp policy but it doesn't cover pre-existing and there is a cap on coverage. If something major happened, then we'd probably go ahead and activate COBRA in that case. We don't plan to take anyone to the doctor during the month.

I could add them to mine but hate to do that when it's such a short period of time. Plus I'm not sure it'd be much cheaper than COBRA. I get free coverage but there are no discounts for family members.

I don't know. It makes me nervous to hold off on COBRA unless we need it - thinking worst case - what if DH is in accident & can't call in to get the coverage started or something.

We could swing the COBRA payment but I just really hate paying $1000+ for a month of coverage! I plan to put in a call or two today to some local health ins contacts.

 

[MAO]

Is it possible to talk to the healthcare people at your job and ask them for recommendations? If you work at a large corporation this might not be feasible, but if you can connect with someone in the department that deals with the employee insurance maybe they could help you -- maybe there's a 'temporary' option they have that they don't mention. Or perhaps they have suggestions as to where else to look. I don't imagine any company is unfamiliar with the idea that people leave, so they may have documentation you could look at even though it's not *you* that's leaving. (hope that made sense!)

 

[Marionnette]

Thanks everyone. That's good to know about the pre-existing conditions because 2 have ongoing issues. I was reading more about the short term temp policy but it doesn't cover pre-existing and there is a cap on coverage. If something major happened, then we'd probably go ahead and activate COBRA in that case. We don't plan to take anyone to the doctor during the month.

I could add them to mine but hate to do that when it's such a short period of time. Plus I'm not sure it'd be much cheaper than COBRA. I get free coverage but there are no discounts for family members.

I don't know. It makes me nervous to hold off on COBRA unless we need it - thinking worst case - what if DH is in accident & can't call in to get the coverage started or something.

We could swing the COBRA payment but I just really hate paying $1000+ for a month of coverage! I plan to put in a call or two today to some local health ins contacts.

I made the phone call to purchase a new insurance policy when our existing insurance company dropped us before open enrollment (long story, but it involves ACA rules). I was able get the policy in my husband's name, even though I was the one doing all of the research and made the final purchase.

However, COBRA might be different and you may not be able to make that purchase in his stead if you aren't even on the policy. Definitely check with your insurance people to see what the steps would be in a case like that.

You also should be aware that if you elect to go with COBRA, any deductibles that you pay into on the COBRA policy will not carry over to the deductibles on your husband's new insurance when it kicks in. With this being a new year, everyone's deductible and contribution toward OOP max. went back to $0 on Jan. 1. When you change policies (going from COBRA to your husband's new insurance), those numbers go back to $0 again! Everything that we had paid toward our OOP maximum in 2014 was erased on Dec. 1, when we had to switch to new insurance. So, take a look at how much will actually be covered by that COBRA policy before you rush to pay for it ahead of time.

 

[StephMK]

Is it possible to talk to the healthcare people at your job and ask them for recommendations? If you work at a large corporation this might not be feasible, but if you can connect with someone in the department that deals with the employee insurance maybe they could help you -- maybe there's a 'temporary' option they have that they don't mention. Or perhaps they have suggestions as to where else to look. I don't imagine any company is unfamiliar with the idea that people leave, so they may have documentation you could look at even though it's not *you* that's leaving. (hope that made sense!)

Yes, I used to work in commercial insurance so I know I can call some people from my old company who handle health insurance.

I made the phone call to purchase a new insurance policy when our existing insurance company dropped us before open enrollment (long story, but it involves ACA rules). I was able get the policy in my husband's name, even though I was the one doing all of the research and made the final purchase.

However, COBRA might be different and you may not be able to make that purchase in his stead if you aren't even on the policy. Definitely check with your insurance people to see what the steps would be in a case like that.

You also should be aware that if you elect to go with COBRA, any deductibles that you pay into on the COBRA policy will not carry over to the deductibles on your husband's new insurance when it kicks in. With this being a new year, everyone's deductible and contribution toward OOP max. went back to $0 on Jan. 1. When you change policies (going from COBRA to your husband's new insurance), those numbers go back to $0 again! Everything that we had paid toward our OOP maximum in 2014 was erased on Dec. 1, when we had to switch to new insurance. So, take a look at how much will actually be covered by that COBRA policy before you rush to pay for it ahead of time.

Good point. I don't think we've paid much, if anything to our deductible yet this year.

I'm leaning towards a cheaper temp policy but we won't decline the COBRA until his new policy starts, just in case something catastrophic happens and we end up electing it for something truly major.

 

[elgerber]

Yes, that really works.
Do NOT decline the COBRA coverage until his new insurance is in effect. You have 60 days to elect the COBRA coverage -- only do so if something happens that will cost more than the premium.

Totally agree with this! I was layed off a year ago, and I did just this. I had a 45 day gap in coverage, I didn't decline the COBRA until my new insurance took effect, and didn't pay it either. But the option was there to pay it if we ended up needing it. I confirmed with an insurance broker that this was OK before I did it. He advised doing it that way.
And pre-existing conditions are no longer an issue with new coverage.

 

[mi*vida*loca]

This happened to me before with my ex husband when he switched jobs. Luckily I just brought in a letter from his job saying he had a lapse in coverage and my jobs insurance picked us up effective immediately. We didn't have cards until the beginning of the next month but we had coverage.

I would check with your job first and see what they can do for you.

 

[Marionnette]

Yes, I used to work in commercial insurance so I know I can call some people from my old company who handle health insurance.



Good point. I don't think we've paid much, if anything to our deductible yet this year.

I'm leaning towards a cheaper temp policy but we won't decline the COBRA until his new policy starts, just in case something catastrophic happens and we end up electing it for something truly major.

The cheap, temp policy should not be a problem unless there is an insurance gap that lasts more than 3 months. Since these temp policies are not ACA-compliant, you run the risk of getting socked with a tax or fine for not carrying insurance, even though you had a catastrophic policy in place. As long as your husband's new job starts covering him and the kids less than 3 months after he loses his current insurance, you should be okay. It's just another thing to consider.

 

[disney1990]

I used to work in HR. If you are only going to be without insurance for 30 days, don't sign up for Cobra (you actually have 60 day to do so). If you have a problem and need coverage - they have to backdate it to the day that your insurance stopped (if you are within that 60 day period).

"The election period must not end before the date that is 60 days after the later of (1) the date that the qualified beneficiary would lose coverage due to the qualifying event, or (2) the date that the qualified beneficiary is sent notice of his or her right to elect COBRA continuation coverage."

 

[StephMK]

I used to work in HR. If you are only going to be without insurance for 30 days, don't sign up for Cobra (you actually have 60 day to do so). If you have a problem and need coverage - they have to backdate it to the day that your insurance stopped (if you are within that 60 day period).

"The election period must not end before the date that is 60 days after the later of (1) the date that the qualified beneficiary would lose coverage due to the qualifying event, or (2) the date that the qualified beneficiary is sent notice of his or her right to elect COBRA continuation coverage."

So regardless if an event has already happened or not, it has to go back to the last date of coverage? That is just so different than P&C. There is no way a carrier would bind a policy if the event in question has occurred already.

It has been drilled into me so long to avoid risks that I am having trouble going with COBRA on hold unless we need it.