COBRA and new health insurance

[wanaberetiree]

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]

I hope I did not ask anything stupid?!

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

 

[Brat]

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.

 

[ziggy29]

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.

 

[REWahoo]

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.

 

[wanaberetiree]

But the coverage does not stop and she is active for this time!?

Thanks all, I will follow your advice.

 

[Dimsumkid]

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.

 

[wanaberetiree]

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.

 

[Dimsumkid]

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.

 

[obgyn65]

Agree with this.

Although the odds something will go wrong are very small, the magnitude of the risk far outweighs saving a few bucks.

 

[wanaberetiree]

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.

 

[Ohioquotes]

Many people utilize the Cobra "grace period." Don't feel bad if you do, as long as you can get on the other plan.