COBRA questions

[WornOut]

Hi everybody!

I will be leaving my current job and starting a new job in two weeks. I can't get on my new health insurance until after I have worked 1 full calendar month. The full calendar month will be July so insurance will start August 1st. Insurance from my current job will stop sometime in June, probably June 30th. The only month where I will need to figure out my own insurance is July.

The quote below is from the COBRA FAQ page. I will have 60 days from the date insurance ends to start COBRA. The time period between losing old employer insurance and getting new employer insurance is less than 60 days.

"Coverage will be terminated during the election period and will not be reinstated until AFTER you enroll in COBRA AND your first payment has been received and processed. Once your insurance carrier has been notified of your election and first payment, your coverage will be reinstated back to the date coverage was lost. Claims incurred during your election period will then be processed."

I am thinking since I only need 1 month of coverage for myself and my son, I could just save the COBRA paperwork when it comes in the mail. If something happens and I need insurance in July, then I can just file for COBRA and have it start July 1st. Or if whatever medial bills exist aren't high enough I can just pay out of pocket instead. Has anyone else ever dealt with COBRA before? It seems like this would work, does anyone know of a time when it didn't work?

 

[COcheesehead]

You can also buy a short term high deductible policy just to get you by. It might be worth getting a quote.

 

[cathy63]

Yes, that's exactly the best way to handle COBRA. Get any pending medical care taken care of in June under your old insurance. Then go without coverage for July.

If it turns out that you have a medical expense where the insurance would pay for more than the cost of the premium, you can retroactively purchase COBRA for July. If you don't have any medical costs in July, then you win and you get to keep the money you would otherwise have paid for insurance.

 

[Dash man]

What if something serious happens to you? Who will complete the COBRA paperwork? Is the risk worth the savings?

 

[Aerides]

Hi everybody!
Insurance from my current job will stop sometime in June, probably June 30th. The only month where I will need to figure out my own insurance is July.

Please first eliminate the "probably" from that statement. Some employers terminate coverage the actual last date of employment - mine did. Get something written, not what the HR person says.

You then have 6 weeks. You have a son - if that's a minor child I would not want to risk being uncovered, and retro-reinstating.

 

[badatmath]

Yep, eliminate the "probably" and FIND OUT.

 

[Rustward]

What if something serious happens to you? Who will complete the COBRA paperwork? Is the risk worth the savings?

Really. Health (or accident) events don't happen on a schedule.