Cobra Benefits Resignation
If the employer has at least the equivalent of 20 full-time employees for at least 6 months or more, they will be required to offer Cobra to you if you resign or are terminated. The employer has 30 days of the date you leave the company to notify the benefit plans of status, and the plan has 14 days from when they receive notice to send the information pertaining to how to elect or decline Cobra to you. If you don't respond in writing by the deadline you will be assumed to have declined coverage. Once you receive the notice, you have a minimum of 60 days from the date of the letter to make a decision (some employers may grant a longer period, but most adhere to 60 days). If you do elect Cobra, you will need to pay the premium from the 1st of the month following your departure from the company through the month in which you elect (so possibly 3 months of premium upfront given the timeframe above). Also, as part of Cobra, you will be paying the full amount of the coverage (any employer contribution previously paid will not continue after you leave the company).
If you do elect Cobra, you will need to make sure your payments are timely - the due date is the 1st of the month, and you have until the end of that month to ensure your payment is received by the plan (ex. due date of Jan 1 - premium must be received by Jan 31). If your payment is not received by the end of the month, they will terminate your coverage for non-payment back to the first of the month in which your payment was due (using the example from above - if you payment didn't arrive by Jan 31 - your coverage would terminate as of 12:01 am on Jan 1). The plan is not required to send monthly billings so you will need to make sure you track your payments and their due dates.
Also, if you elect, but do not pay your premium, your coverage will be terminated. If you used the insurance during that time, the health care provider will be notified that your insurance isn't valid when they bill the insurance company, and then they will bill you for the full amount. If you go during the middle of the month, and then miss your payment at the end and the billing has already been received and benefits paid by the insurance company - the insurance company will have the right to come after you for the amount they paid to your health provider.
If you are concerned about the cost of Cobra and don't have a pre-existing condition, you may want to consider buying either temporary insurance (if you know you will be eligible on another plan soon) or an individual plan. The benefits may not be as good as your prior employer's plan, but the costs may be lower than Cobra. Try local agent, or go to a carrier's website direct to get a quote and see the benefit options available and estimated costs - note costs are subject to disclosure of your health and you'll need to state everything.
If you do elect Cobra, you will need to make sure your payments are timely - the due date is the 1st of the month, and you have until the end of that month to ensure your payment is received by the plan (ex. due date of Jan 1 - premium must be received by Jan 31). If your payment is not received by the end of the month, they will terminate your coverage for non-payment back to the first of the month in which your payment was due (using the example from above - if you payment didn't arrive by Jan 31 - your coverage would terminate as of 12:01 am on Jan 1). The plan is not required to send monthly billings so you will need to make sure you track your payments and their due dates.
Also, if you elect, but do not pay your premium, your coverage will be terminated. If you used the insurance during that time, the health care provider will be notified that your insurance isn't valid when they bill the insurance company, and then they will bill you for the full amount. If you go during the middle of the month, and then miss your payment at the end and the billing has already been received and benefits paid by the insurance company - the insurance company will have the right to come after you for the amount they paid to your health provider.
If you are concerned about the cost of Cobra and don't have a pre-existing condition, you may want to consider buying either temporary insurance (if you know you will be eligible on another plan soon) or an individual plan. The benefits may not be as good as your prior employer's plan, but the costs may be lower than Cobra. Try local agent, or go to a carrier's website direct to get a quote and see the benefit options available and estimated costs - note costs are subject to disclosure of your health and you'll need to state everything.
