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Selling Cutco in Canada-Border Policies and Legalities?

Losing employer-based health insurance for 30 - 60 days. What are the legalities or policies involved?

  • I am likely going to be without my employers insurance at the end of February, as I have a pending resignation. From there, I plan to take up either my own policy for catastropic, which I have had before. Or is it possible for me to continue on a simliar policy with the same insurance I have now with my employer? Is that common? Im resigning, so I understand I can't do COBRA or keep the same policy. I may be able to pick up a new employer policy by April, so if it's expensive for a month or two that's no big deal. I am wondering more about what is considered lapse in policy? Or if I stick with the same insurance company, if I have to repay deductibles and things like that if I am currently under treatment for something. Or if I am under treatment, is changing policies even possible? I have a soft tissue issue I am working through with a physical therapist that might continue for a while or may even look at a general exam. (also I am asking for insurance advice and not employment advice, so please dont comment blindly on speculation that I should not resign)

  • Answer:

    You're only not eligible for COBRA if the company isn't required to offer (due to less than 20 employees) OR through gross misconduct. If you just quit, you can pick up COBRA. But, if you're only 30 days between plans there is no rush to pick up COBRA (since you have 60 days to decide). You can go in with the intention to pay out of pocket, but if something "big" happens, you should be able to pick up COBRA (since it's retroactive to the end date). Just make sure somebody else has instructions on how to make that happen. In other words, write a check place it in an envelope and tell them if you end up in the hospital.....mail the payment. Otherwise, if you spend less than COBRA costs, then why pay for it? It's basically free, contingent coverage.

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What you think you "understand" about COBRA is completely and totally wrong. The reason you are leaving makes absolutely no difference. If your insurance ends because your job ends, then you can do COBRA, unless there is some other reason why not (such as your employer being too small to be subject to COBRA laws). If you have no insurance for 63 days in a row, then all conditions that you already have (whether or not you are currently being treated) will not be covered by any insurance for the first 6-18 months after you do get insurance.

StephenWeinstein

You misunderstand - it doesn't matter if you resign or get laid off or are fired - you're STILL eligible for COBRA, if your employer is subject to COBRA. So . . . you're probably best off to get a quote for your own policy first, then compare that cost to COBRA. Odds are, you won't find private health insurance (in most states) to cover your preexisting condition, and depending on what it is, you could flat out be refused coverage. The only SURE way to get coverage for your preexisting condition, is via COBRA. If you pick up a new private policy with the same company, they do NOT have to cover your preexisting condition, and the deductible would automatically RESET. When you go on to a new group plan, the "lapse" you have to worry about, is 63 days or more.

mbrcatz

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