Scared of losing insurance

I work at a small newspaper and today I learned that the big corporation that owns our paper is selling us. We are being bought by an independent, smaller company that owns about 5 weekly papers in very small towns in the area. After the sale is complete tonight at midnight our health insurance will be terminated. I can't believe they aren't giving us at least 30 days to keep our benefits, but apparently, they aren't. I don't know what (if any) benefits our new boss will offer us. I would think they'd give us something, but it probably won't be nearly as good as what I have now (which was exceptionally good insurance), since it is a much, much smaller company. I guess I'll meet my new boss on Friday and he'll tell us if he's offering us anything then. I quick ran to my pharmacy today and got a month of meds, so I'm set for a while as long as nothing happens.

I'm kind of scared.

The company selling us said they will be sending us COBRA forms within 10 business days, but I've heard that is really expensive...? Anyone have any advice/info. for me regarding any of this?

Thanks.

Hi dakotagirl. Thanks for the response. Yes, you made sense. Do you remember how many days it would have been for you to have a pre-existing condition? Yeah, I am probably freaking out prematurely. I have to remind myself to be patient and wait and see what my new boss says. It's been an emotional day because all of this was a complete shock to me and all my co-workers and we're all sad my boss will have to leave.

How have you been doing lately?

COBRA is very expensive but I wouldn't pass it up with my current health situation. It is probably cheaper than private insurance with all of the high deductibles, co-pays and the rates they charge for people with pre-existing conditions. Don't stress, small companies sometimes have better insurance plans than larger companies. Maybe you will be pleasantly surprised. Depending on what state you're in, it may be required for the company to provide medical to fulltime employees.

Hey Sara - I can relieve your worries. Deep breath. During your time to elect COBRA you are not considered without coverage. You usually have 60 or 90 days to decide if you will take on the COBRA. If you get your new insurance before the time to elect COBRA runs out you will NOT have a pre-existing condition. If during that 60-90 days something happens and you do need your coverage you elect the COBRA and pay retroactively to the date that you initially lost your coverage. If by the end of the election period you do not have new insurance, then you can be considered pre-existing. So, I would suggest you wait until the end of your election period to see if you will have coverage. In that time you can be saving up and re-budgeting in case you have to COBRA (assume $300-$800/month). If at the end of the election period you don't have new insurance I would elect the COBRA - but you will have to pay from the date you lost the insurance.

So, say you find out you will have your new health insurance in 1 month. Then, do not pay up front for the COBRA but do not send anything back declining it. If you have something catastrophic come up, then say you elected it and pay the premium. It is the only time you can pay for insurance only if you need it.

Good luck! I know it is very stressful.

I agree.. don't do anything till ya half to.... But at same time... for people in our situation.... who can't be without due to preexistingconditions and such.... then outside insurance is the answer. I have blue cross blue sheild? anthem...... it costs my company ( just for me ) 225 a month. Now it has has a big deductible... 2500. but it keeps me in continuing coverage incase of big surgerys. or major accidents. No such thing as pre existing cond con for me.... as long as I keep coverage.... <LOL. Least thatswhat my agents tell me....

No matter how much it is don't pass up on the COBRA. With a pre-existing condition under no circumstances should you let yourself have a lapse in coverage. You can get new insurance that covers your UC ONLY if you don't have a lapse of more than, I believe, 45 or 60 days. Do whatever you have to do to purchase the COBRA. The cost will be what you were paying for your insurance PLUS your employers contributed amount and an administration fee, so yes, it will be more expensive than it was, but still far less than paying for your meds, needing to be hospitalized and not having insurance. NOT taking the COBRA while you figure out your other options can place you in bankruptcy if you get ill and have not been able to get coverage.

I don't want to make ou more nervous and upset, but I cannot stress enough how important it is to make sure you KEEP YOUR COVERAGE.

Meesh

Thank you Meesh.

barbl said...
I worked for Cigna, pre-existing is up to your new employer. The insurance companies don't dictate pre-existing. The companies do. I paid claims for companies through Cigna that never had pre-existing conditions. Some companies would not pay on pre-existing for up to 1 year after coverage started. What people don't understand is that when a company signs up with a large insurance company for coverage they can just about write their own contract. I had companies that paid 100% on everything (very rare) and companies that paid almost nothing [img]/community/emoticons/sad.gif[/img]

totally false. If you can prove previous/continuous coverage it is against federal law to have wait periods for prex conditions. Part of HIPPA regs if memory serves.

Wait to see what new employer offers, then consider cobra option. cobra cost = employer actual cost plus a 2% admin fee. It is "expensive" but truly reflects the benefits we recieve and would still be a lot less expensive than "self insuring" out of pocket.

If the new policy is weak, you can still keep your old policy through cobra for 18 months.

I think the maximum days you can have an uninsured gap for prex purposes is 63 days.

Good luck and DONT stress you have options. Perhaps the new employer will have better benefits?

http://www.dol.gov/ebsa/faqs/faq_consumer_hipaa.html

Lot's of official answers here. :)

Hi there Sara

Just wanted to share my research with you. I am a Canadian living down here in the US and so I have taught myself a fair amount about your health insurance programs since my move (I must say, every day the state of you health care makes me want to move babck to Canada). I am also in a similar position to you in that I am pregnant and planning on leaving my job (and therefore group health insurance) when my baby is born. My husband's company does not provide insurance to its employees. So this is what I have found out:

1) DO NOT let go of COBRA. Under HIPPA you have 63 days to get coverage from another group plan in order to avoid a pre exsisting clause. However, if something should happen in the mean time, and your new job should fall through, you would be up _____ creek.

2) That being said, HIPPA only regulates group plans (ie. doesnt matter if you are within 63 days if you are applying for individual insurance). I very much doubt that you would get coverage in the individual market (ie. get individual coverage if for some reason your new employer does not offer group health insurace). For example, as I am leaving my job and my husband's company does not provide group health insurance, I have to find mine elsewhere. I have already recieved my "letter of denial" from Blue Cross, Blue Shield of New Mexcio - as I was expecting. Like I said, I VERY MUCH doubt you would find any company that would provide you with individual insurance with a UC med history.

3) In New Mexico there is a state funded "High Risk Insurance Pool". Some states have them and some do not. I am not sure where you live but If you go online you will be able to find out if your state has this type of health plan for those people who are denied in the individual market. Basically, high risk pools are for those people like us that are uninsurable (insurance is for the healthy you know!?!) and/or do not have health insurance offered through their emplyer (a group plan). In New Mexico I have to provide the high risk pool with a denial letter from another insurance company based in a health issue in order to qualify. Anyhow, that is another option for you just in case your new employer does not offer health insurance and you cant get it in the individual market. Heads up - apparently New Mexico has a great high risk pool, but some other states I have heard (those that even have a pool) have wait lists. You may want to look into this option, just in case, asap.

In the mean time, as other have stated, DO NOT LET GO of your Cobra. Once you have gone over those 63 days, you will be subject to whatever pre-exsisiting clause a new employer has in place in their group plan.

Hope this helps. Jo

Thanks so much Jo and Judy for sharing your info. with me. I am reading the Iowa link right now and the link UC Dude posted. I will let you all know what my new boss tells me tomorrow regarding benefits.

Sara - are you in Iowa? Keep in mind that every state has their own laws regarding pre-existing conditions. One state, I can't remember which one, has made pre-ex illegal for all policies, even individual ones. But that is the only state in the union that does that. Like others said, under Hippa if you go from one group plan to another group plan before your opportunity to elect COBRA expires then you will be all set. (Or if you elect cobra and then go to a group plan, same deal).

I am concerned about 1 thing though - my dad's company (a major US, publicly traded company) went bankrupt. They were not allowed to elect COBRA because without the company existing anymore there was no "group" to join. So, if your company was sold I would just make sure that the company still exists (like they didn't change names and incorporations) and that you will be allowed to Cobra if need be.

Gads, Sara, I'm sorry to read that your company dropped this bombshell news at zero hour! It seems unethical, to say the least. I hope your new employer will offer health insurance, but, if worse comes to worst, go for the COBRA. One prospect you'd have to recoup self-payment of premiums would be itemized income tax deductions at the end of the year. I just read on the Obama Transition Team's Website (Health topics) where some average citizen responders to his proposals recommend that he seek legislation repealing the 7.5% of adjusted gross income that we have to use as a deductible to compute allowed medical expense deduction on Form 1040/Schedule A. It would definitely help middle-income salaried people like us to be able to declare exactly what we pay out for medical/dental care + insurance & get real tax relief in return. Good luck with your upcoming workplace discussion & please keep us posted! I'm also uneasy these days because I face a number of retirement-related health insurance changes in the near future. / Old Hat (nearly 30 yrs with left-sided UC ... [etc.])