Should I Sign and Return My COBRA Form Today?

April 29, 2022 5:25 AM

Should I sign and return my COBRA form Today? Special snowflake details inside ...

Last day at my last job was April 1, 2022.

Employer health insurance from my last job ends April 30, 2022

First day at my new job was April 18, 2022.

Employer health insurance from my new job starts June 1, 2022.

The Snowflake Part: Maybe it's just because I'm getting old, or maybe I'm just a little stressed 'cause of the new job, but I'm finding the rules that would drive my decision to be really confusing.

Basically, I want to bridge the one-month gap.

If I understand the rules correctly, I can sign and return the form to my former employer today and be covered for the one month at no $ risk to us if we don't need it. If we have a major medical emergency during the month of May, I can retroactively elect to continue our coverage and make the monthly payment for May, then go on my new employer's health insurance starting June 1.

Is this correct?

Thanks, hive mind!

posted by ZenMasterThis to Health & Fitness (4 answers total)

Yes. At least, that is how it worked for me when I had a similar decision to make wrt COBRA. Just be sure not to pre-pay your COBRA fee to the insurance company before the last possible due date, which IIRC is 15 days into the next month after service. Which is to say, your COBRA bill for May will come due June 15. And at that point, if you simply decide to call them and say, "Nope, don't need COBRA for May after all," then you're free and clear.

The only time it gets complicated is when you have a two-or-more month gap because once June 15 rolls around and you don't pay for May, then IIRC your COBRA coverage lapses. There's no way to have June coverage without having May coverage. But!! There is a way around that too. All you need to do is apply for Obamacare/state health insurance market coverage based on the qualifying event of having lost a job. And the timeframe for which the "qualifying event" makes you eligible to start new coverage in the middle of the year is longer than a month. So there is that too. Often Obamacare coverage is cheaper than COBRA though you might get a lower quality plan.
posted by MiraK at 6:19 AM on April 29, 2022 [1 favorite]

I remember my COBRA plan wanted $600 a month for their plan. Government insurance was $10 a month. YMMV, of course.
posted by Rumi'sLeftSock at 7:18 AM on April 29, 2022

You have 60 days to elect to retroactively start COBRA benefits from the day coverage ends. You can elect to start benefits any day until 29 June 2022 - 60 days after 30 April 2022. However, you must (retroactively) start the election on the day the benefits end - there can be no gap in service. So, if you end up needing insurance on 31 May 2022, the day before your new coverage starts, you will have to pay for all days between 30 April 2022 and 31 May 2022 as well as 31 May 2022.

If you do this, consider taking the signed forms for retroactive election and providing them to a trusted friend to send in if necessary. In case of a massively incapacitating injury, you may not be able to retroactively elect coverage, and you don't want to run out the 60 day clock because of that.
posted by saeculorum at 8:21 AM on April 29, 2022 [3 favorites]

Great answers above- but I want to add a clarification. We are still in the National Emergency Outbreak Period, which extends the time you have to elect and pay for COBRA. This extension is either (1) 60 days after the end of the National Emergency, also known as the Outbreak Period, which has not yet occurred; or (2) a maximum period of one year.

So you don't have a 60 day clock, you have a year and about 60 days. Or until the outbreak period is declared over, but as of yesterday, there's no indication that will be in the near future. You would then have 45 days to make your first payment.
posted by Torosaurus at 4:57 AM on April 30, 2022 [1 favorite]