Health insurance + Job Change Mid-Month in a Global Pandemic
November 5, 2021 3:09 PM Subscribe
I got a new job. Yay. My last day at my current job is a Friday, and my first day at my new job is the next Monday. Last time I did this, I was unmarried and we were not in the middle of a global pandemic, so I didn't think much of a potential gap in coverage. Now I'm married, my spouse is on my insurance, and I want to make sure nobody goes meaningfully without coverage. We're in California.
My spouse and I are both on a PPO sponsored by my current employer. My spouse wants to use my job change to start using coverage provided by their current employer (it's a better deal for our circumstances), and I want to start using the PPO provided by my new employer. We have no reason to believe we'll get sick or injured in the 48 hours in between Friday and Monday, but also, there's a bloody pandemic on, so I don't want to leave it to luck.
New employer HR says that my coverage begins on my start date.
Spouse's employer's HR says that my spouse can't do anything until my last day, and THEN they can file paperwork for a qualifying life event. It's unclear to me how this is handled in the gap in between when coverage ends and when the paperwork is processed by HR.
Current employer is rather salty at me for leaving, I think, and HR is ignoring my queries. I hope I'd have coverage until the end of the month but I'm not actually sure.
I know I can elect COBRA, but I'm not sure if I can elect COBRA for two days. I've heard that it's possible to fill out the COBRA paperwork, and then seal/mail the envelope on the way out the door to the doctor, if required. Is that really a thing?
How should we be approaching this?
My spouse and I are both on a PPO sponsored by my current employer. My spouse wants to use my job change to start using coverage provided by their current employer (it's a better deal for our circumstances), and I want to start using the PPO provided by my new employer. We have no reason to believe we'll get sick or injured in the 48 hours in between Friday and Monday, but also, there's a bloody pandemic on, so I don't want to leave it to luck.
New employer HR says that my coverage begins on my start date.
Spouse's employer's HR says that my spouse can't do anything until my last day, and THEN they can file paperwork for a qualifying life event. It's unclear to me how this is handled in the gap in between when coverage ends and when the paperwork is processed by HR.
Current employer is rather salty at me for leaving, I think, and HR is ignoring my queries. I hope I'd have coverage until the end of the month but I'm not actually sure.
I know I can elect COBRA, but I'm not sure if I can elect COBRA for two days. I've heard that it's possible to fill out the COBRA paperwork, and then seal/mail the envelope on the way out the door to the doctor, if required. Is that really a thing?
How should we be approaching this?
When I left my previous job, the coverage (BCBS) was continued through the end of the month. I actually pushed my end-date towards the beginning of the next month in order to avoid any kind of gap there.
Maybe rather than HR, you can directly ask your health insurer to understand what the typical coverage looks like when you leave?
posted by montag2k at 3:28 PM on November 5, 2021 [4 favorites]
Maybe rather than HR, you can directly ask your health insurer to understand what the typical coverage looks like when you leave?
posted by montag2k at 3:28 PM on November 5, 2021 [4 favorites]
One more thing to think about: Employers also provide life insurance. I also needed to make sure there was no gap in coverage there, just in case. For me, it was the same story as health insurance: everything went until the end of the month.
posted by montag2k at 3:30 PM on November 5, 2021
posted by montag2k at 3:30 PM on November 5, 2021
Just to clarify--it you elect to go with COBRA on day 59 you'll have to pay for all the missed premiums (you won't just start paying then) which could (will) be expensive. Hold onto a little savings if you need to in case things go very south.
posted by sevenless at 3:34 PM on November 5, 2021
posted by sevenless at 3:34 PM on November 5, 2021
I've had corporate insurance last till the end of month, regardless of when I quit. So you might be covered by the old job if they are paying up front for everybody for the current month.
posted by COD at 4:54 PM on November 5, 2021 [7 favorites]
posted by COD at 4:54 PM on November 5, 2021 [7 favorites]
I think you're wise to consider this. My friend's husband took on a full-time job after they got married for the insurance. But he'd had none before, and it didn't kick in for a month. During that month, he had a heart attack. As his health recovered, as you might imagine his finances went south. For the next several years, the newlyweds were hounded by collectors, bad credit and a whole lot of stress. Finally, he inherited some money, and was able to make the whole thing go away, but what a price to pay for getting sick.
posted by Violet Blue at 8:43 PM on November 5, 2021 [1 favorite]
posted by Violet Blue at 8:43 PM on November 5, 2021 [1 favorite]
HR is ignoring my queries Every US state has an insurance commission; part of the Attorney General's office. I would complain to them that your employer is refusing to communicate with you about your health insurance. Most likely, they might check it out and your company might be sightly chagrined. Or, they have a pattern of bad behavior, and there are more consequences.
I am not in the insurance industry in any way. I think the answers here, esp. that your coverage will continue until the end of the month in which you are employed, are accurate, but you have taxpayer supported experts and I'd contact them. Your employer is behaving appallingly and I hate to see this kind of nonsense tolerated.
posted by theora55 at 9:17 PM on November 5, 2021
I am not in the insurance industry in any way. I think the answers here, esp. that your coverage will continue until the end of the month in which you are employed, are accurate, but you have taxpayer supported experts and I'd contact them. Your employer is behaving appallingly and I hate to see this kind of nonsense tolerated.
posted by theora55 at 9:17 PM on November 5, 2021
Hi, HR person and health plan administrator here for a very small business. Our health plan provider charges a full month if the termination comes after the 15th day of the month, they do not allow for half billing.
If I were in this situation, if you elected COBRA continuation, I would charge you pro-rated premiums for the two days between your termination and the end of the month, then charge the full month due at the start of the month to continue coverage from that. I would also charge the 2% increase for admin time that is allowed by law. You might quibble about the pro-rated two days, but the health benefit is a way that employees are compensated and I work to get good benefits to retain workers, so there's no incentive for an employer to continue compensating someone who is leaving and doing no work.
As to HR being "salty" and ignoring you, that is bull-fucking-shit. I take COBRA elections and anything having to do with health coverage very seriously, as fucking up an employee's coverage right before a medical event can create a financial disaster orders of magnitude larger than even my worst payroll error.
Your employer is required to provide a COBRA Election Notice:
"After receiving a notice of a qualifying event, the plan must provide the qualified beneficiaries with an election notice within 14 days. The election notice describes their rights to continuation coverage and how to make an election. The notice should contain all of the information you will need to understand continuation coverage and make an informed decision whether or not to elect it. The notice also should provide the name of the plan’s COBRA administrator and tell you how to get more information."
source: https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra.pdf
I have done COBRA for departing employees and let me tell you, it is not hard, despite taking on HR functions without formal HR training and background.
You should issue a short sharply worded message to HR formally requesting the election notice as required by federal law.
posted by sol at 11:23 PM on November 5, 2021 [3 favorites]
If I were in this situation, if you elected COBRA continuation, I would charge you pro-rated premiums for the two days between your termination and the end of the month, then charge the full month due at the start of the month to continue coverage from that. I would also charge the 2% increase for admin time that is allowed by law. You might quibble about the pro-rated two days, but the health benefit is a way that employees are compensated and I work to get good benefits to retain workers, so there's no incentive for an employer to continue compensating someone who is leaving and doing no work.
As to HR being "salty" and ignoring you, that is bull-fucking-shit. I take COBRA elections and anything having to do with health coverage very seriously, as fucking up an employee's coverage right before a medical event can create a financial disaster orders of magnitude larger than even my worst payroll error.
Your employer is required to provide a COBRA Election Notice:
"After receiving a notice of a qualifying event, the plan must provide the qualified beneficiaries with an election notice within 14 days. The election notice describes their rights to continuation coverage and how to make an election. The notice should contain all of the information you will need to understand continuation coverage and make an informed decision whether or not to elect it. The notice also should provide the name of the plan’s COBRA administrator and tell you how to get more information."
source: https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra.pdf
I have done COBRA for departing employees and let me tell you, it is not hard, despite taking on HR functions without formal HR training and background.
You should issue a short sharply worded message to HR formally requesting the election notice as required by federal law.
posted by sol at 11:23 PM on November 5, 2021 [3 favorites]
Insurance, including COBRA, is paid for by the month in advance, at least that's the general rule. I doubt your current employer is going to get a refund for a partial month. It might be worth the time to call your current insurance company and ask if your coverage actually ends on the end date submitted by the employer.
But the retroactivity clause is the real out here with all its faults.
posted by SemiSalt at 6:13 AM on November 6, 2021
But the retroactivity clause is the real out here with all its faults.
posted by SemiSalt at 6:13 AM on November 6, 2021
All of this also depends on:
How many employees your current employer has (subject to COBRA or not);
If not subject to COBRA (because it's under 20) - what state (some states have state "mini" COBRA, some do not);
What the actual terms of the employer's plan say - does coverage end day of termination or the end of the month.
Also keep in mind that if your current employer is self-insured, calling the state insurance department won't do anything. If your employer's plan is self-insured and believe your employer is violating your rights under the group health plan, it's the US Department of Labor, Employee Benefits Security Administration that you want to call.
posted by Pax at 11:30 AM on November 6, 2021
How many employees your current employer has (subject to COBRA or not);
If not subject to COBRA (because it's under 20) - what state (some states have state "mini" COBRA, some do not);
What the actual terms of the employer's plan say - does coverage end day of termination or the end of the month.
Also keep in mind that if your current employer is self-insured, calling the state insurance department won't do anything. If your employer's plan is self-insured and believe your employer is violating your rights under the group health plan, it's the US Department of Labor, Employee Benefits Security Administration that you want to call.
posted by Pax at 11:30 AM on November 6, 2021
This thread is closed to new comments.
Yes, the good news is that COBRA is retroactive. As long as you elect to take advantage of COBRA within 60 days of leaving your job, it will be backdated and you won't have any gap in coverage.
The bad news is that AFAIK, you usually can't pay for a partial month of insurance. If you don't end up having any medical expenses over that weekend, you can skip COBRA and pay nothing; but if you do need to make the election, you'll probably end up having to pay a full month's premium, even though you only need to cover a 2-day gap.
posted by teraflop at 3:27 PM on November 5, 2021 [5 favorites]