Short term (5 days) medical insurance?
March 29, 2021 7:34 AM Subscribe
My family of 4 has been on COBRA since I was laid off in November. I start a great new gig on April 5 (yay!) and would like to avoid paying the $850 COBRA fee for the full month, to just cover those 5 days. Does anyone have experience with short-term medical insurance to cover such gaps?
Unfortunately my new company can only start my insurance on my first day of employment, so they can't make an exception for me. My wife, 2 kids (under 12) and I are all healthy, and I only want to cover for medical emergencies. I could risk having the 5 days uncovered... we are ready to stay home, no driving, etc... but I do have a 2-3 day home improvement project (I'm building a pergola) that I'd like to get done, and the prospect of having no insurance makes me nervous.
I could think of quite a few things I could do with $850. I would feel a bit more at ease if I could just spend ~$200 to maintain some form of basic catastrophic medical insurance for those few days.
Have any fellow MeFi's dealt with such an issue?
Unfortunately my new company can only start my insurance on my first day of employment, so they can't make an exception for me. My wife, 2 kids (under 12) and I are all healthy, and I only want to cover for medical emergencies. I could risk having the 5 days uncovered... we are ready to stay home, no driving, etc... but I do have a 2-3 day home improvement project (I'm building a pergola) that I'd like to get done, and the prospect of having no insurance makes me nervous.
I could think of quite a few things I could do with $850. I would feel a bit more at ease if I could just spend ~$200 to maintain some form of basic catastrophic medical insurance for those few days.
Have any fellow MeFi's dealt with such an issue?
I would call your cobra provider and see if they will pro-rate your fees for that month. That's not uncommon in the industry.
posted by bbqturtle at 7:39 AM on March 29, 2021 [2 favorites]
posted by bbqturtle at 7:39 AM on March 29, 2021 [2 favorites]
When I had to use COBRA for just such a gap, I was advised not to apply unless I had an expense. Your old HR could probably confirm this for you, or whatever state COBRA info is available.
posted by Frowner at 7:40 AM on March 29, 2021 [1 favorite]
posted by Frowner at 7:40 AM on March 29, 2021 [1 favorite]
I'm pretty sure that retroactive COBRA only works when you first go on it, not in the middle of your service. Otherwise people would just string their plans out month to month, only getting insurance as needed. OP has been on COBRA since November.
Agree you should call and see if they'll prorate. I'm not aware of any other way to do this, and I'm the benefit person at my work. (Though I'm not very knowledgeable on non employer sponsored coverage.)
posted by phunniemee at 7:41 AM on March 29, 2021 [12 favorites]
Agree you should call and see if they'll prorate. I'm not aware of any other way to do this, and I'm the benefit person at my work. (Though I'm not very knowledgeable on non employer sponsored coverage.)
posted by phunniemee at 7:41 AM on March 29, 2021 [12 favorites]
Previously:
What I usually tell people who will have a less than 60 day gap:
1. Fill out the COBRA paperwork
2. Put it and a check for the premiums in an addressed envelope with a stamp.
3. Put the envelope somewhere obvious.
4. Tell significant other / friend: "If I'm in the hospital, mail that envelope."
5. Once you get new coverage, shred the envelope.
If your gap will be more than 60 days you should probably enroll or find other coverage for the time.
(Note: I do not know if that applies to continuation of a COBRA period, so verify with your insurer.)
posted by Mr.Know-it-some at 7:41 AM on March 29, 2021
What I usually tell people who will have a less than 60 day gap:
1. Fill out the COBRA paperwork
2. Put it and a check for the premiums in an addressed envelope with a stamp.
3. Put the envelope somewhere obvious.
4. Tell significant other / friend: "If I'm in the hospital, mail that envelope."
5. Once you get new coverage, shred the envelope.
If your gap will be more than 60 days you should probably enroll or find other coverage for the time.
(Note: I do not know if that applies to continuation of a COBRA period, so verify with your insurer.)
posted by Mr.Know-it-some at 7:41 AM on March 29, 2021
Not an expert on this, but you should ask your former company's HR if you'll even be charged a premium for April coverage. The most recent Covid relief bill included a 100% federal subsidy for COBRA premiums for April-September (link). This subsidy is for anyone who's on or eligible for COBRA due to an involuntary termination or reduction of hours. The employer is supposed to cover the former employee's premiums and apply for reimbursement through a tax credit.
posted by bassooner at 7:56 AM on March 29, 2021 [8 favorites]
posted by bassooner at 7:56 AM on March 29, 2021 [8 favorites]
I'm pretty sure that retroactive COBRA only works when you first go on it, not in the middle of your service.
Sorry, I think you're right. Shouldn't try to answer these kinds of questions this early in the morning!
posted by praemunire at 8:18 AM on March 29, 2021
Sorry, I think you're right. Shouldn't try to answer these kinds of questions this early in the morning!
posted by praemunire at 8:18 AM on March 29, 2021
Can you only get coverage for yourself, if you'll be the only one building, and let your family's coverage lapse? Or let it lapse and hire someone for 1 day to do the more dangerous part of the job? Should cost less than 850.
posted by never.was.and.never.will.be. at 9:23 AM on March 29, 2021
posted by never.was.and.never.will.be. at 9:23 AM on March 29, 2021
Best answer: I'm a benefits administrator, I'm not your benefits administrator, etc. This is all going to vary based on your former employer's policies, and I strongly urge you to call them, particularly if you have a benefit center and not an HR person.
Congratulations! You're experiencing a qualified change in status. This allows you to make changes to your benefits mid-year... Including COBRA. Normally, COBRA is paid monthly, but you can drop coverage effective the day you gained coverage elsewhere. Call now, and find out if your former employer requires a call the day of the change or will backdate. There's nothing worse than calling a week later and realizing you could have dropped it sooner.
COBRA is billed in advance. If you've paid your April bill and call to cancel because you're gaining coverage elsewhere, you should receive a partial refund. If you have not paid in advance, you should receive an adjusted bill in May that reflects just the few days you had COBRA in April before you called to drop coverage. There is generally a 30 day grace period to pay your COBRA bill, but due to COVID it's more like a grace year.
And finally, COBRA generally drops to your last paid through date if you don't pay your bill. Your bill doesn't go to collections or against your credit. If you haven't paid for April yet, and don't experience a medical need, that's something to consider. With everything going on with COVID and subsidy, however, your best bet is to call.
posted by Torosaurus at 3:15 PM on March 29, 2021 [4 favorites]
Congratulations! You're experiencing a qualified change in status. This allows you to make changes to your benefits mid-year... Including COBRA. Normally, COBRA is paid monthly, but you can drop coverage effective the day you gained coverage elsewhere. Call now, and find out if your former employer requires a call the day of the change or will backdate. There's nothing worse than calling a week later and realizing you could have dropped it sooner.
COBRA is billed in advance. If you've paid your April bill and call to cancel because you're gaining coverage elsewhere, you should receive a partial refund. If you have not paid in advance, you should receive an adjusted bill in May that reflects just the few days you had COBRA in April before you called to drop coverage. There is generally a 30 day grace period to pay your COBRA bill, but due to COVID it's more like a grace year.
And finally, COBRA generally drops to your last paid through date if you don't pay your bill. Your bill doesn't go to collections or against your credit. If you haven't paid for April yet, and don't experience a medical need, that's something to consider. With everything going on with COVID and subsidy, however, your best bet is to call.
posted by Torosaurus at 3:15 PM on March 29, 2021 [4 favorites]
I thought that the American Rescue Plan was subsidizing COBRA:
For a limited period, the ARPA requires employers to cover 100% of the employee’s cost of continuing group health coverage under COBRA for up to six months if an employee has lost coverage under their employer’s health care plan due to a reduction in hours or involuntary termination (for reasons other than gross misconduct) and elects COBRA continuation. The subsidy does not apply to employees who voluntary terminate employment. Those eligible to receive the COBRA subsidy include eligible employees and covered dependents who (i) are either already enrolled in COBRA, (ii) did not elect COBRA when it initially became available to them, or (iii) elected COBRA initially but let the coverage lapse.
posted by rdr at 11:02 PM on March 29, 2021
For a limited period, the ARPA requires employers to cover 100% of the employee’s cost of continuing group health coverage under COBRA for up to six months if an employee has lost coverage under their employer’s health care plan due to a reduction in hours or involuntary termination (for reasons other than gross misconduct) and elects COBRA continuation. The subsidy does not apply to employees who voluntary terminate employment. Those eligible to receive the COBRA subsidy include eligible employees and covered dependents who (i) are either already enrolled in COBRA, (ii) did not elect COBRA when it initially became available to them, or (iii) elected COBRA initially but let the coverage lapse.
posted by rdr at 11:02 PM on March 29, 2021
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posted by praemunire at 7:37 AM on March 29, 2021 [18 favorites]