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COBRA and new health insurance
09-14-2010, 02:32 PM
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#1
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Full time employment: Posting here.
Join Date: Apr 2010
Posts: 717
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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
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09-15-2010, 04:56 PM
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#2
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Full time employment: Posting here.
Join Date: Apr 2010
Posts: 717
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I hope I did not ask anything stupid?!
But so far I go not replies to my question :-(
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09-15-2010, 05:24 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,111
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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.
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09-15-2010, 05:39 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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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)
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09-15-2010, 05:55 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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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
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09-15-2010, 06:41 PM
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#6
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Full time employment: Posting here.
Join Date: Apr 2010
Posts: 717
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But the coverage does not stop and she is active for this time!?
Thanks all, I will follow your advice.
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09-15-2010, 07:22 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2010
Location: Chicago
Posts: 1,008
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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.
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09-15-2010, 07:28 PM
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#8
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Full time employment: Posting here.
Join Date: Apr 2010
Posts: 717
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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.
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09-15-2010, 07:46 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jul 2010
Location: Chicago
Posts: 1,008
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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.
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09-16-2010, 02:29 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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Agree with this.
Quote:
Originally Posted by REWahoo
Although the odds something will go wrong are very small, the magnitude of the risk far outweighs saving a few bucks.
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__________________
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.
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09-16-2010, 10:08 AM
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#11
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Full time employment: Posting here.
Join Date: Apr 2010
Posts: 717
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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.
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09-17-2010, 01:40 PM
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#12
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Confused about dryer sheets
Join Date: Sep 2010
Posts: 9
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Many people utilize the Cobra "grace period." Don't feel bad if you do, as long as you can get on the other plan.
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