Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
COBRA and new health insurance
Old 09-14-2010, 03:32 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 412
COBRA and new health insurance

Hi all

My wife exhausted COBRA subsidy as of 8/31/10 and we need to add her to my work plan.

My employer HR suggested that I have 30 days after her health coverage stopped and I can add her to my health insurance.

My current thinking was that since she is covered till 9/30/10 by "grace" period (in other words, even if we make no payments), to make a change and move her under my plan starting 10/1/10.

I wanted to get my plan scrutinized by the wisdom of people of this forum.

Does it have major holes?

Regards
__________________

__________________
wanaberetiree is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-15-2010, 05:56 PM   #2
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 412
I hope I did not ask anything stupid?!

But so far I go not replies to my question :-(
__________________

__________________
wanaberetiree is offline   Reply With Quote
Old 09-15-2010, 06:24 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
The major hole would be that something happens to YOU during the "grace period" or there is a glitch in the paperwork. Sometimes a very sharp pencil pokes.

I wouldn't chance it.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 09-15-2010, 06:39 PM   #4
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
If all goes according to plan, this can work. But things don't always go to plan and this would make me have trouble sleeping at night. I'd just add her now, personally.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 09-15-2010, 06:55 PM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,137
I'm with Brat and Zig. Although the odds something will go wrong are very small, the magnitude of the risk far outweighs saving a few bucks.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-15-2010, 07:41 PM   #6
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 412
But the coverage does not stop and she is active for this time!?

Thanks all, I will follow your advice.
__________________
wanaberetiree is offline   Reply With Quote
Old 09-15-2010, 08:22 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Jul 2010
Location: Chicago
Posts: 1,001
I'll assume you're already past the point of getting her on your plan since your plan starts 1st of each month. So your Cobra grace period is probably one of those situations where if nothing happens you save the month's premium payment, otherwise, you need to back pay the premium on the Cobra (looks like you need to pay 100% now if you do). Technically, her coverage is officially over, but if you made the payment, this would make the insurance coverage retroactive. I don't believe you can add her on your plan now, unless your company allows a life event immediately. You should probably ask HR if you have the ablility to add her on tomorrow, if that's what you want to do. I used to support HR/Payroll/Benefits from an IT perspective for many years, so I don't know all the specific benefit rules pertaining to life event eligibility and timing, even though I spent 5 years at Blue Cross.
__________________
Dimsumkid is offline   Reply With Quote
Old 09-15-2010, 08:28 PM   #8
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 412
That's correct. My thinking was that if I have to, I could pay back and get retroactive coverage from Cobra. You made a good point about "plan starts 1st of each month" - I need to double check this, my HR did not sound very particular about this, all what they said was that I will be able to make a change during 30 days time.
__________________
wanaberetiree is offline   Reply With Quote
Old 09-15-2010, 08:46 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jul 2010
Location: Chicago
Posts: 1,001
You definitely qualify for the life event to allow you to add her on your insurance starting in 2 weeks. I just can't tell you the specifics on timing other than the usual 1st or end of month start times to activate/start coverage. You'll need to ask your Benefits person. If that grace period is retroactive, you're technically covered.
__________________
Dimsumkid is offline   Reply With Quote
Old 09-16-2010, 03:29 AM   #10
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Agree with this.

Quote:
Originally Posted by REWahoo View Post
Although the odds something will go wrong are very small, the magnitude of the risk far outweighs saving a few bucks.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 09-16-2010, 11:08 AM   #11
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 412
Thanks all again for your comments!

Here is the update - I called the HR and was told that I need to make a change withing 31 days after COBRA has ended; I can add my DW retroactively from the 9/1/10 and they won't make me pay retroactively for it.
__________________
wanaberetiree is offline   Reply With Quote
Old 09-17-2010, 02:40 PM   #12
Confused about dryer sheets
 
Join Date: Sep 2010
Posts: 9
Many people utilize the Cobra "grace period." Don't feel bad if you do, as long as you can get on the other plan.
__________________

__________________
Ohioquotes is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Skip the COBRA and go individual insurance right away? Buckeye Health and Early Retirement 22 07-02-2009 06:39 PM
COBRA vs Start Retiree Health Insurance oliverdickens Health and Early Retirement 8 05-08-2007 06:04 PM
health history for health insurance vic Health and Early Retirement 22 10-26-2006 10:07 AM
health insurance and effect on increased health care costs Martha Other topics 9 08-08-2006 02:54 PM
Health Insurance rcsj FIRE and Money 8 01-18-2005 06:40 PM

 

 
All times are GMT -6. The time now is 10:06 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.