After 23 years working at my megacorp I accepted a retirement package earlier this year. It was a few years earlier than planned, but was a better option than relocating with the company especially considering the big golden parachute that came with the package.
The company is paying 100% of Cobra insurance coverage until May next year (0-cost to me). And then it will automatically convert to retirement insurance. My employer was big-pharma so my insurance package was/is excellent. The retirement insurance is also very good, and very cheap, so a huge benefit.
Here is the question. I would like to do some contract/project work during the next few years to help cover the income gap, so "semi-retired". And there is a possibility of going back to work full time for a while if a good opportunity presents itself. How does this affect Cobra?
For example, if I go to work for a company that offers health insurance can I elect not to accept it, still stay on 0-cost Cobra and then roll over to the megacorp retirement plan?
Searching on Cobra rules gets me this sort of response:
Cobra coverage begins on the date that coverage would otherwise have been lost by reason of a qualifying event and can end when:
The company is paying 100% of Cobra insurance coverage until May next year (0-cost to me). And then it will automatically convert to retirement insurance. My employer was big-pharma so my insurance package was/is excellent. The retirement insurance is also very good, and very cheap, so a huge benefit.
Here is the question. I would like to do some contract/project work during the next few years to help cover the income gap, so "semi-retired". And there is a possibility of going back to work full time for a while if a good opportunity presents itself. How does this affect Cobra?
For example, if I go to work for a company that offers health insurance can I elect not to accept it, still stay on 0-cost Cobra and then roll over to the megacorp retirement plan?
Searching on Cobra rules gets me this sort of response:
Cobra coverage begins on the date that coverage would otherwise have been lost by reason of a qualifying event and can end when:
- The last day of maximum coverage is reached
- Premiums are not paid on a timely basis
- The employer ceases to maintain any group health plan
- Coverage is obtained with another employer group health plan that does not contain any exclusion or limitation with respect to any pre-existing condition of such beneficiary
- A beneficiary is entitled to Medicare benefits