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Re: Zach's COBRA question. For those who don't know, COBRA (Consolidated Omnibus Budget Reconciliation Act) is a law passed in 1985 [1] that compels companies
by lchengify 12y ago
Re: Zach's COBRA question.
For those who don't know, COBRA (Consolidated Omnibus Budget Reconciliation Act) is a law passed in 1985 [1] that compels companies to offer "continuing health insurance" to employees that leave the company for any reason other than "gross misconduct".
Basically it means that you can pay the company directly for your employer's health plan for a period of time, typically 18 months. The out-of-pocket will be more expensive, because your employer probably covered some of the premium cost. However, the premium as a whole is often cheaper than "individual coverage", since the company negotiates lower premiums with the insurance company.
The company will typically mail you the form to fill out. It's pretty short, basically just a "opt-in" box to continue getting health insurance through the company's plan.
One important detail: depending on your employer, health coverage probably ends on the last day of employment or the immediate end of the next month. However if something happens between you leaving and you filling out the form, COBRA still covers you because the law states that as long as you sign up within 60 days, it's "retroactive back to the event", the event being you leaving [2]. This covers the case of a catastrophe happening in the gap, e.g., getting hit by a car between the event and you mailing in the form.
Caveat: IANAL, so always check with a legal professional when evaluating these options. But COBRA is generally a useful thing and I typically recommend people take it unless they have another gig lined up already.
[1] http://en.wikipedia.org/wiki/Consolidated_Omnibus_Budget_Reconciliation_Act_of_1985 http://en.wikipedia.org/wiki/Consolidated_Omnibus_Budget_Rec...
[2] http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html
- NateDad 12y agoJust to clarify.... it's retroactive for 60 days. That means you don't really have to do anything for the first 45-ish, and if you don't need insurance in that time, and you get a new job, you're done. If you do need insurance (break a leg or something), then you can apply then, and it'll take effect retroactively to your departure date. If you get to 45-ish days and still don't have a new job that'll start before the 60 day mark, you'll need to sign up, or you risk getting hurt after the 60 day mark, when you then can't get insurance, and you'll be SOL. I am not a lawyer, I've just been between jobs many times in my career :)
- rbobby 12y agoHopefully on day 45 you don't end up in a coma for the next 16 days. Don't mess with your health insurance.
- chris_wot 12y agoIt's posts like these that make me thankful to be in a country with a free health care system.
- zbowling 12y agoIn the pre-existing condition days, this could still be an issue, because not being covered at any point would reset the clock.
- joesmo 12y agoI don't see how. There is no lapse in coverage at all. That's what retroactive means.
- johnpowell 12y agoJust for some perspective here. In 2001 I was working in a wafer fab and quit. On my exit the HR lady asked me about COBRA and if I wanted it. I declined since it was 600 dollars a month. And I was a single 21 year old male with no kids. I only made 9 dollars a hour at the job so asking 600 a month was kinda bonkers.
- tdicola 12y agoThat $600/month was what the company was paying for your health insurance, not some number they made up. Think of it like you were earning more than $9/hour but some of that money went to pay for your health insurance.