COBRA vs. out-of-pocket group insurance?

January 14, 2008 4:40 PM

I left my prior job in December and was hired by a temp agency. The agency offers an out-of-pocket health insurance plan. Does this mean I can't opt to continue my old coverage with COBRA instead?

Does the fact that my temp agency offers a basic health insurance group plan, though they don't put any money toward it, mean that I am not eligible for COBRA?

The CORBA information my old company sent me says:
"Continued coverage will end for an electing individual on the occurance of any of the following:...
* The date on which the electing individual becomes covered under any other group health plan (as long as the new plan contains no restrictions on coverage for pre-existing conditions which affect the electing individual) after COBRA is elected;"

and
"Under COBRA, your right to continuation of coverage terminates if you become covered by another employer's group plan that does not limit or exclude coverage for your pre-existing conditions."

and on the form:
"Please answer the following questions:
Are you covered under another health plan? YES NO"


I'd prefer to opt for COBRA rather than the health insurance through my temp agency, because (1) I think the plan is better and (2) I think I'd have a gap in coverage because there was a week between the two jobs.

But does the availability of this out-of-pocket group insurance mean I'm no longer eligible for COBRA? Or do I need to buy a month's worth of COBRA coverage to close the gap and also get the new employer's oop insurance plan from then on?

Thanks in advance!!

posted by ahimsa to Law & Government (5 answers total)

Best answer: ...if you become covered by another employer's group plan...

If you don't choose to take the new insurance, then you would never become covered, right?

IANAHRP
posted by clh at 5:01 PM on January 14, 2008

Best answer: i am on cobra and have available my university's insurance. this is totally permissible. in other words, in my experience, the availability of other group insurance does not equal accepting that insurance as your new primary plan. (but: i have a pre-existing condition, and so my university insurance's coverage limits with respect to my pre-existing condition may not trigger cobra's expiration.)

i think you can just not accept (and so remain uncovered by) the temp agency's plan, but i would call your old plan - the one to be continued under cobra - and ask for the person who deals with cobra. mine has one person, and she's great.
posted by ncc1701d at 5:05 PM on January 14, 2008

Best answer: You can stay with the COBRA. You are no longer eligible if you choose to take the new plan, but you don't have to.
posted by astruc at 5:06 PM on January 14, 2008

Best answer: I'm in your exact situation. I work for a temp agency that offers its own (shitty) health insurance. I chose to forgo that and pay for my COBRA insurance. I've had no problems with eligibility.
posted by desjardins at 5:31 PM on January 14, 2008

Response by poster: Thanks everyone! I will call the COBRA person to confirm tomorrow, but it looks like I was confusing being eligible to elect coverage under another plan with actually being covered under that other plan. Which makes perfect sense, as the insurance companies wouldn't want to get double-billed by me. :) Thanks!
posted by ahimsa at 5:42 PM on January 14, 2008