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Posted 6/17/2015 7:39 PM (GMT 0)
Ok, I am retiring. Our health insurance from work goes poof on 8/15/15.

I will have MediCare parts A/B starting on 8/1 and MediCare Advantage added in starting on 9/1/15.

My wife, covered under my health insurance at work, will have nothing from 8/15-8/31. Starting on 9/1, she will be under my teacher's retirement plan (she is under 65 and will have BCBS). We will also have vision/dental/etc. starting on 9/1.

OK, here is my problem/question. My wife will not have insurance from 8/15-8/31, as stated. I was thinking of getting just a brief catastrophic plan for her. But my HR department has what looks like a better idea.

Starting 8/15, I have 60 days to get a COBRA Plan and it would be retroactive to 8/15. So, we can see what happens. If something medical happens between 8/15-8/31, we can, AFTER THE FACT, just extend my work plan for her (even though I was primary and she was part of my family plan, it would be just for her). This sounds too good to be true.

HR seems 100% sure that is the case.

Can someone here confirm that?

Mel
Posted 6/17/2015 7:45 PM (GMT 0)
IMHO
It's only two weeks. Also, COBRA plans are so terribly expensive.

But since you can get it after the fact, that's great!!

It does sound too good to be true.
Get HR to state it in writing then then take that to the bank.
Posted 6/17/2015 7:58 PM (GMT 0)
Agreed - get it in writing and then it seems you would be good to go.
Posted 6/17/2015 8:08 PM (GMT 0)

compiler said...

Starting 8/15, I have 60 days to get a COBRA Plan and it would be retroactive to 8/15. So, we can see what happens. If something medical happens between 8/15-8/31, we can, AFTER THE FACT, just extend my work plan for her (even though I was primary and she was part of my family plan, it would be just for her). This sounds too good to be true.

HR seems 100% sure that is the case.

Can someone here confirm that?

Mel

Yes it's true... No paper work from HR will even be looked at until they are sure you are gone... And they can't penalize you because it takes them a while.
Posted 6/17/2015 8:14 PM (GMT 0)
I would submit the Cobra request on day 1 and be prepared to pay the month if they get around to it. Compared to commercial insurance, Cobra may not be that terribly expensive. Betting that things can be backdated, and then running into a hard-nose lawyer months or years later, could be a very large risk.

May turn out that they don't get to the paperwork, and you can cancel the request before they ask for money?

Since I live in the 2% club (this works for 98%), I would take the safest route.
Posted 6/17/2015 8:41 PM (GMT 0)
The cost for Corba is whatever the current cost per employee is/was plus up to 2% admin fee.

The per employee cost of course is what the employer is paying and any contributions that the employee is/was making.


The internet is full of info on this... Here's a nice FQA list from the Dept of Labor:

www.dol.gov/ebsa/faqs/faq-consumer-cobra.html
Posted 6/17/2015 9:02 PM (GMT 0)
I too have been told in the past that Cobra can be used retroactively to cover small gaps of a couple of weeks (theoretically up to 60 days but you don't want to cut too close to the edges.) I went poking around and it seems to still be true. Here are some things I found...

Here is the FAQ from the US Dept. of Labor. (see question 8, I think) FAQs about COBRA Continuation Health Coverage

And here is a blog that explains the process but was written by a "random guy on the Internet": My Money Blog: COBRA and Retroactive Health Insurance Coverage
Posted 6/17/2015 9:36 PM (GMT 0)
I've been doing some research. It does appear to be true. Amazing in this day and age where the insurance companies seem out to %$#@ you:

>>>>>>>>>>>>>>>>>>>>>>
If you are entitled to elect COBRA coverage, you must be given an election period of at least 60 days (starting on the later of the date you are furnished the election notice or the date you would lose coverage) to choose whether or not to elect continuation coverage.
Each of the qualified beneficiaries for a qualifying event may independently elect COBRA coverage. This means that if both you and your spouse are entitled to elect continuation coverage, you each may decide separately whether to do so.
>>>>>>>>>>>>>>>>>>>>>>>>>
and:
>>>>>>>>>>>>>>>>
If you elect continuation coverage, the coverage you are given must be identical to the coverage currently available under the plan to similarly situated active employees and their families (generally, this is the same coverage that you had immediately before the qualifying event).
>>>>>>>>>>>>>>>>>>>>>..

and:

>>>>>>>>>>>>>>>
COBRA requires that continuation coverage extend from the date of the qualifying event for a limited period of 18 or 36 months.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Unless I am misreading something, it looks like HR is right!

By the way, it is expensive.

Cost for the both of us (actually, family plan): about $2300/month
Cost for one person (my spouse in this case): about $950/month.

HR THINKS they can cut that cost in half for 2-week coverage.

So, we will eschew any catastrophic plan and take a chance.

Cheryl said, jokingly, she will have to stay home in bed for the two weeks.

I said that would only INCREASE the chance of a medical issue!

Mel
Posted 6/17/2015 9:37 PM (GMT 0)
Compiler,
That is exactly what happened in my case. I was fired from my last job so my wife and I gambled that neither of us would have a health issue. Low and behold, almost 60 days later I found out I had prostate cancer. I was able to enroll and have retroactive coverage. Had it been any longer I would not have been able to get covered until the following January when the National Health program went into effect.
Posted 6/17/2015 11:26 PM (GMT 0)
Compiler, sorry I'm late to this thread. The law says they have to give you 60 days to sign up for Cobra, and they have to provide continuous coverage retroactively
Posted 6/18/2015 12:29 AM (GMT 0)
I did this same thing a while ago when switching jobs. I presumed the loophole still stood, but it sounds like several people have already verified that's the case!
Posted 6/18/2015 2:44 AM (GMT 0)
Sounds like there is a loophole. Best for us that I am too risk-averse, it seems.

Anyway, get things in writing (not emails) just to be safe.
Posted 6/18/2015 5:56 AM (GMT 0)
I got it in writing -- from the gov site, as quoted.

Mel
Posted 6/18/2015 11:04 AM (GMT 0)
Good for you, Compiler. I'm starting the Cobra thing as well in August. It sure isn't cheap, but in my case, the price is comparable if not better than some of the garbage plans that I looked into. In my case, I'll have it for 18 months until 65...or until the entire insurance thing collapses...whichever comes first.
Posted 6/18/2015 1:31 PM (GMT 0)
Yes, in fact if your employer discontinues the Group Plan, I think you become ineligible for Cobra. (Don't remember for sure, but I think that's what I read).

Say, GOP, I meant to ask you about your moniker.

Is GOP a political statement?

Mel
Posted 6/18/2015 1:48 PM (GMT 0)
Mel,

Have things been too peaceful for you lately? Trolling?



When politics are involved, "don't ask / don't tell" is the best approach on HW. devil
Posted 6/18/2015 2:06 PM (GMT 0)

compiler said...
OK, here is my problem/question. My wife will not have insurance from 8/15-8/31, as stated. I was thinking of getting just a brief catastrophic plan for her. But my HR department has what looks like a better idea.

Starting 8/15, I have 60 days to get a COBRA Plan and it would be retroactive to 8/15. So, we can see what happens. If something medical happens between 8/15-8/31, we can, AFTER THE FACT, just extend my work plan for her (even though I was primary and she was part of my family plan, it would be just for her). This sounds too good to be true.

HR seems 100% sure that is the case.

Can someone here confirm that?

Mel

Mel, my experience was in early 2010 but here is what happened to me. In June of 2009 the company I worked for for over 36 years announced it was closing up in late 2009. I was going to turn 62 at the end of June. I had heart surgery in August 2009 and following up on a high PSA number I was diagnosed with prostate cancer in October and opted for surgery that would be in January 2010. The company closed up in November 2009 so I was out of a job but the company extended our medical coverage for one more month until late December 2009. With the law the way it was before Obamacare, no insurance company would even talk to me about any coverage at all so COBRA was my only choice. I had the surgery before I had received and filled out the papers for COBRA coverage. Every thing I came across said I would be covered retroactively to the time my employer provided insurance ended if I opted for COBRA coverage. So, of course, I did go with COBRA coverage and the surgery was covered. I had to go on to a state high risk pool coverage when the COBRA expired at 18 months and I just turned 64 so I was not eligible for Medicare. The state high risk pool covered me from the time COBRA ended until I turned 65.
Posted 6/18/2015 2:45 PM (GMT 0)
It is in writing and there are no loopholes because it was all written into the law many years ago to provide for this sort of thing.

The COBRA cost is the actual cost of the insurance, not reduced by employer cost sharing. COBRA is good for up to 18 months. She is also now eligible for individual coverage under the ACA law even though enrollment is closed because she has lost her coverage. What you are likely to find is that continuing your employer sponsored coverage may be better than the individual plans available.

I would strongly urge you to make sure it is HSA compliant so you can set up an HSA to make sure your out of pocket expenses are tax deductible. If there is not a HSA compliant COBRA option from your employer, then consider an individual plan that is HSA compliant.
Posted 6/18/2015 4:02 PM (GMT 0)
I guess Mr. WW was lucky that 29 months of COBRA was the same as his former employer's group medical premium.

Good luck, Mel!
Posted 6/18/2015 4:35 PM (GMT 0)
142:

Not trolling at all. Was always curious about his name, GOP.

But I am gratified to see that you are ever-vigilant!

Mel
Posted 6/18/2015 11:04 PM (GMT 0)
Mel, make sure you re-schedule any doctor appointments or drug refills that would have happened in last half of August.

We were in the same situation in 2013 but Karen became Medicare eligible 9-1-13 a month after I was eligible 8-1-13.

BTW, thanks to all you youngens in the work force making sure my Social Security and Medicare funding does not go belly up.
Posted 6/19/2015 4:32 AM (GMT 0)
Totally true and absolutely no need to get it in writing- it is here at this link and federal law.

http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

The MINIMUM time you have is at least 60 days after they provide you with notice of coverage continuation options so good chance its much longer. (I've seen well over 90 before).

So when you get the paperwork showing your options that is when the 90 days begins.... Just have that paperwork ready just in case but hold on to see if you need it. If you do then send the paperwork in. They will bill providers retroactively and any out of pocket (meds, etc) keep receipts and paperwork to submit your own claims for that.

Praying you don't need it!!

PS- editing to add that you are allowed to elect that continuing coverage JUST for your spouse (or any dependent individually) and not yourself.

Krissy

Post Edited (kukukajoo) : 6/18/2015 10:35:24 PM (GMT-6)

Posted 6/19/2015 11:14 AM (GMT 0)
Compiler,
To answer your question: it was indeed a political statement. I am no longer a member, however. The pubs went way too limp for my liking.
Sorry 142 if that is too harsh for your liking. Sometime reality gets in the way of political correctness.
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