Comments on: I hope I get a helmet for Christmas.

Question: I hope I get a helmet for Christmas.

wabashbdw — Mon, 18 Dec 2006 09:56:22 -0800

Are there any laws that pertain to how much time an employee is given to consider their insurance options?

My employer dropped a bomb on me last Friday concerning the company health insurance, and I've since determined that I'll be better off purchasing a policy on my own. Due to the timing of this revelation, I was basically given 9 business days (not counting Christmas) to secure an alternate policy.

Of course, there is no realistic scenario in which 9 business days is adequate time to opt out of the company insurance and secure an alternate policy, so there is a chance I will be uninsured for a week or two after the New Year. Are there any laws that demand the company provide more time for such a situation? Or should I just suck it up and pay a ton of money for a short-term policy to cover the potential gap in coverage.

By: JakeLL

JakeLL — Mon, 18 Dec 2006 10:14:23 -0800

IANAL, but that sounds like it would be a state law kind of thing. To increase the chance of someone being able to answer your question you may want to include your state.

By: wabashbdw

wabashbdw — Mon, 18 Dec 2006 10:39:35 -0800

I live in Indiana (please no jokes, I like it here).

By: ilsa

ilsa — Mon, 18 Dec 2006 10:50:43 -0800

A ton of money for short-term coverage? No, not really. Go over to eHealthInsurance.com and check out the rates for short term coverage. I have had to use them in the past and found their rates very competitive. Remember, this would be "hit by a truck" insurance rather than "came down with flu" insurance.

They can also help you price out individual policies. My personal experience is that you can forget being covered before the first of February at this point.

By: rosebengal

rosebengal — Mon, 18 Dec 2006 10:59:09 -0800

Any chance you can use the company health insurance until you can find your own coverage? It took us nearly 6 mo to find our own private insurance coverage because several policies that seemed like shoe-ins denied us coverage for apparently life threatening conditions like insomnia...

By: wabashbdw

wabashbdw — Mon, 18 Dec 2006 11:12:17 -0800

Any chance you can use the company health insurance until you can find your own coverage?

No, if I use the company insurance I'm automatically locked in for the whole year (barring a 'qualifying event' that would allow me to make changes).

By: MarkAnd

MarkAnd — Mon, 18 Dec 2006 11:14:41 -0800

I've never heard of a law that restricts employer open enrollment procedures, but that doesn't mean it doesn't exist.

I'd always take group insurance over individual insurance, particularly in a state where individual coverage can be contingent on your health. Most insurers require that companies pay 50% toward the cost of single coverage. That's a pretty good discount even if it still ends up costing you $150/month.

Any chance you can use the company health insurance until you can find your own coverage? It took us nearly 6 mo to find our own private insurance coverage because several policies that seemed like shoe-ins denied us coverage for apparently life threatening conditions like insomnia...

If you're enrolled in a section 125 plan with your employer, often they can't let you out unless you have a qualifying event. That is, even if you could cancel your coverage, your employer would still be compelled to take your payroll deduction until the next open enrollment.

By: Thorzdad

Thorzdad — Mon, 18 Dec 2006 15:42:27 -0800

As someone who has had to purchase his own insurance in Indiana, I'd advise you stick with your employer's plan, unless the changes are completely onerous.

What, exactly, has changed in the plan that forces you to look for private coverage? Increased employee share of the premium? The cost of getting private family coverage will take your breath away. And not in a good way.

By: Deathalicious

Deathalicious — Mon, 18 Dec 2006 22:46:29 -0800

so there is a chance I will be uninsured for a week or two after the New Year.

I've been uninsured for months. Months! Okay, so 2 months. It really wasn't so bad.

Try not to get hit by anything.

By: unrepentanthippie

unrepentanthippie — Tue, 19 Dec 2006 05:52:38 -0800

Once you become uninsured even for a day (not eligible to go back and pay for Cobra if your appendix ruptures, I mean really uninsured), you run into the pre-existing condition exclusions. This varies wildly depending on the insurance company and probably the state, but it's not something you want to undertake lightly.