insurance

[psalmist]

my wife has discussed moving to a new area. . . (fort mill south carolina). I have insurance with the company I am with and would lose it. What does a person do about insurance. How do you go about everything with out it or new insurance . . . or can you. Thanks Seth

 

[Guest]

COBRA benefits

COBRA benefits

Hi Seth, rather than lose your insurance, you could qualify for COBRA benefits, you pay the premiums that your company pays. Sometimes this is too expensive for the employee. The good thing about it though is you would have continuous coverage and when your wife or yourself gets a new job with health benefits, you won't be sidetracked with pre-existing conditions clauses. See the link below and an exert I copied over.

http://www.dol.gov/dol/topic/health-plans/cobra.htm

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.

COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.

COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.

 

[kfay]

If your insurance is on a group plan now, you should be able to keep it with cobra for 18 months, which you should do (you will have to pay this out of pocket). Any new job that provides insurance would have to offer it to you and if you sign up at the beginning of your eligibility, you will be covered. With your heart history, it would be almost impossible to find a private policy to cover you. Also, as long as you don't have a gap in coverage (i.e. you keep your old insurance with cobra until you have new coverage) the insurance company can't deny you coverage on a pre-existing condition. I hope this helps some...

 

[dick0236]

This can be a slippery slope. I was in the health insurance business but, alas, have been retired 12 years and things may have changed. COBRA will be available to you if your present company has 20 employees. Many states have programs similar to COBRA that help employees of companies with fewer than 20 employees to retain their coverage for a time. You will be limited to 18 months continuance if you terminate your employment. It is true that you will pay 102% of your employers cost. However, your employers cost may be pretty high depending on the age, makeup, claim history etc of the group. After you use up the 18 month extension, you can convert to an individual plan but the conversion policy will probably have limited benefits and will be costly. My advice would be to carefully look into your options so you don't put yourself and family into a "crack". Unfortunally, this is a problem for anyone with chronic health issues.

If you move and go with a large company, you may be able to forego the above hassle. Most large company plans will be "guarateed issue" with no or limited pre-existing condition clauses. However, to be safe, don't let your current coverage lapse until you know how and when the new coverage will pick you up.

 

[ALCapshaw2]

IF I were in your situation, I would NOT quit my job and give up my insurance (even with COBRA) UNTIL I had another Job Offer with a Company that provided Group Insurance. (You would be wise to take COBRA until the new insurance becomes effective, noting that some companies have a 'waiting period' before their group insurance becomes effective on New Hires).

The BAD NEWS is that you would probably NEVER be able to obtain Health Insurance if you let your coverage lapse.

'AL Capshaw'

 

[francie12]

In the state of Iowa it is mandated by law that no one be denied health care coverage. That was a very good thing for us when my husband quit his job and we were denied COBRA! My son was able to get on HIP Iowa with full coverage and reasonable payments even with lapsed coverage. There is a $1,500 deductible, which hurts, but better than the alternative, which was no coverage!