Health Insurance question. Just throwing this out there....

[PassingFair]

I am thinking of leaving a job with healthcare coverage (Blue Cross) and
taking another job that will provide healthcare coverage. Problem?

The coverage won't begin for 3 months. No exceptions, they say.

Have any of you been in this situation?

I have tried to look at COBRA rates, but it seems that affordable
rates for short term are only provided for people who are FIRED,
not those who choose to change employers.

I am responsible for our family of four, as my husband works
as a contractor and does not have healthcare with the company
who "employs" him. None of us have any "pre-existing conditions",
although my youngest daughter has been diagnosed with PCOS.

Anyone cross this particular bridge lately?

[Chan790]

1. Hmm...

give me a moment to think. I'm pretty sure what you're actually looking for is bridge coverage rather than COBRA...if memory serve me right (b/c I've never done this.), you can just call your current insurer (BCBS) and ask them for a quote for comparable coverage to your current coverage...it's going to be a good deal more expensive, you can then inquire what your options are to lower it (higher deductables, opted-out coverage for things you won't probably need, etc.)

Another thing to look into though it may not help you right now is that most states have state organizations for contract labor and freelancers that sometimes offer opt-in health coverage. There is also, on a semi-related note, a national Freelancer's Union that your husband is eligible to join that advocates for the rights of the self-employed and contractors, tax fairness, laws to allow them to collect UI between contracts, offers a number of services and is free for approved membership. (www.freelancersunion.org) They only offer health coverage in metro NYC (which is not free) last I checked...there was some talk of rolling it out to over metro-regions eventually but I don't think it's national. (yet? ever? No idea.) Still, they're a good resource for other things for the self-employed/contracting like Mr. PassingFair.

[PassingFair]

3. Thanks!

Mr. PassingFair's situation has not really been a concern, because I was
carrying the insurance...

I don't want to call MY HR dept. , as I haven't actually quit yet, and I
don't want them to know.

Guess I can ask to have a session with the HR person at the new company.

In my experience though, those "in the know" know less than those of
us who have already done a little poking around.

It's only three month, maybe I can load everyone on meds and take a
gamble that nothing horrible happens.....

[HERVEPA]

2. The rate for COBRA should have no relationship with whether you were fired or quit

It should roughly be the cost you were paying toward your insurance plus the cost the company was paying for your insurance.

Rates for COBRA are not short-term or long-term. They are available for 18 months.

Your employer will send you a letter at some point after you leave employment offering the coverage and letting you know the cost.

You accept or not.

If you accept, you pay the premium monthly.

When you start your new job, you stop paying the premium for COBRA.

Something to note.
After the old job ends, you will not have the COBRA right away and may need to pay some out of pocket if you have expenses. However, once you have paid your first COBRA premium, within the allotted amount of time (45 days?), you are retroactively covered back to the date you left the company, and will be able to file a claim for those expenses.

[PassingFair]

4. This is good to know.

Is this recent information?

Someone told me that COBRA rates had become "uncapped" recently.

[HERVEPA]

6. Perhaps the "uncapped" the person referred to was the change you mention below?

[PassingFair]

5. Apparently, there was a reduced rate for those who involuntarily lost their jobs.

Employees and Former Employees
If You Lost Your Job

The Recovery Act provides eligible workers who have lost their jobs with a 65 percent subsidy for COBRA continuation premiums for themselves and their families for up to 15 months.

Eligible workers pay 35 percent of the premium to their former employers.
To qualify you must have been involuntarily separated from your job between Sept. 1, 2008, and May 31, 2010.
This subsidy is reduced if your filing status is single and your modified adjusted gross income exceeds $125,000 ($250,000 if you file a joint return). If your modified adjusted gross income exceeds $145,000 ($290,000 for joint filers), you do not qualify for the subsidy.



But even that has expired.

Looks like the COBRA rate for my family will be over $1200 a MONTH.

Nuts to that.

I'll quarantine them before I pay that.

[HERVEPA]

7. Dangerous option you mention, in my opinion, going without coverage

If someone in your family was involved (FSM forbid) in a bad accident during the intervening time. Could wipe out any savings you have or worse. Just a thought. Good luck with whatever you choose.

[Lydia Leftcoast]

8. When I moved from Oregon, where I was on Kaiser-Permanente,

to Minnesota, where Kaiser coverage is unavailable, I got a short-term policy from Blue Cross to tide me over till I could find a more long-term solution. It was quick and easy to apply for, and the price was reasonable. I think the maximum coverage period was six months.

[PassingFair]

9. Kick for more possible suggestions or experiences...nt

[LynneSin]

11. This is what I remember but this was over 15 years ago.

I was told that COBRA was available retroactively. Mind you it was just me and I really couldn't afford what the payments were. But I was told that if I did find out I needed it I just had to pay for the months passed and I would have the coverage.

Example - say in Month #2 a member of your family ended up in the hospital. You would just have to pay the months passed since you required Cobra (2 Months or $2400) and then you would have the coverage.

But that was over 15 years ago so for all I know policies have changed. Plus it was just me, I have no kids so nothing to worrya bout with them. I had no health issues and no reason to think I would come down with a serious illness between the 3 months from last job to new job.

Also, I would check the new job and see what the cost would be to purhcase insurance for 3 months. It's worth a shot.

[cbayer]

10. You may want to cross post this in Health, as some knowledgable people hang out there.

You are entitled to COBRA, but the rates are going to reflect what your employer is paying for your insurance. If you can swing that for 3 months, that is probably your best bet.

PCOS is going to be a pre-existing condition in a new plan until the new laws kick in (assuming SCOTUS doesn't overturn the whole thing).

[CBHagman]

12. Bumping this.

I've been in a similar situation, but as with an earlier poster, it was many years ago, and I have no specific suggestions for now.

[PassingFair]

13. Thanks CB....

I have the interview at the prospective job tomorrow morning....

Hope they like me!

Things finally look like they're starting to churn around here
(Detroit area)....I've haven't had an offer this good in a long
time, but the pause in benefits has me a little worried.

[mrmpa]

14. Here's what I've done in the past.........

When I was leaving a job for another (no matter how you leave your job, firing, layoff or a different job, you're eligible for COBRA), I would fill out the forms from employoyer saying I wanted to COBRA. I would not pay for it, unless I needed it. I usually had a month to wait before I had coverage with the new company. So for one month, I didn't pay for COBRA, and if there was an emergency need, I would then pay for the COBRA. Also before leaving the old job, I made sure all my prescriptions were filled. Hope this helps.

[PassingFair]

15. Thanks Mr. MPA....

The axe will fall swiftly and surely if I quit.

Insurance will cut off immediately.

COBRA looks to be too expensive to make sense, so I'll
be looking for catastrophic gap coverage.

[mrmpa]

16. you're welcome...

and it's Ms. mrmpa