I'm wondering if anyone has successfully changed their coverage level for Medical, Dental, and Vision when they enrolled in COBRA. During Open Enrollment in 2023, I selected the higher premium/lower deductible plans for Medical and Dental that I obviously would NOT have selected had I known I'd be laid off three weeks later. I checked with MyHR during the WARN period, and I was told that I could select different levels of coverage (HMO/lower premium vs. PPO/higher premium) once I enrolled in COBRA. However, when I called COBRA today to ask them why I didn't see that option on their website, they said it was only possible to change coverage during Schwab's Open Enrollment in 2024. This doesn't seem right - am I missing something? Isn't a layoff a qualifying event?
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If someone elects to continue their medical coverage through COBRA after being laid off, they can change their health plan during the company's open enrollment period. According to the U.S. Department of Labor, individuals receiving COBRA continuation coverage are entitled to the same benefits, choices, and services as similarly situated participants or beneficiaries under the plan, including the right to choose among available coverage options during open enrollment[3]. Therefore, they can change their health plan to a less expensive one during the company's open enrollment.
Additionally, if the individual is already enrolled in COBRA, they may have the option to change to a Marketplace plan outside of open enrollment if their COBRA costs change or if they lose a government subsidy and must pay the full cost. This would qualify them for a Special Enrollment Period to make changes to their coverage[1].
In summary, individuals receiving COBRA continuation coverage can change their health plan during their former employer's open enrollment period or during a Special Enrollment Period if their COBRA costs change, allowing them to make adjustments to their coverage to manage expenses.
Sources
[1] COBRA Coverage and Health Insurance Marketplace® Options https://www.healthcare.gov/unemployed/cobra-coverage/
[2] See Your Options If You Lose Job-Based Health Insurance https://www.healthcare.gov/have-job-based-coverage/if-you-lose-job-based-coverage/
[3] Are You Allowed To Change COBRA Plans? | Insurance Information https://www.cobrainsurance.com/kb/changing-cobra-insurance-plans/
[4] FAQs on COBRA Continuation https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-consumer.pdf
[5] COBRA Continuation Coverage https://www.cms.gov/CCIIO/Programs-and-Initiatives/Other-Insurance-Protections/cobra_fact_sheet
By Perplexity at https://www.perplexity.ai/search/fe1befc3-be53-4694-a497-67bd9a8100e0
The form is comically spartan. It will say Election Deadline and Document ID in the upper right corner. The second page says Applicant's Authorization and Agreement.
COBRA is an opportunity to continue your existing coverage.
Losing coverage (terminating and not enrolling in COBRA for example) is a qualifying event. You can use your COBRA notice as documentation to enroll in coverage elsewhere like the Marketplace or in a spouse's plan as a QLE. Keep in mind there is a time limit to enroll after the QLE effective date based on the terms of the plan you are enrolling in. I believe the Marketplace gives you 60 days, but many employer plans limit it to 30 days
OP here... I still haven't gotten the physical packet, but I see a document online with different costs for Employee + Spouse, Employee + Children, etc... is that the double-sided election form you're talking about? That has different options for covered people, but not different levels of coverage (HMO vs. PPO).
Yes, losing your job is a qualifying event, yes you can make election changes. I want to say you have 30 days?? from your last day, so probably until end of February for you to make new elections or decline Cobra. I believe Cobra takes about 40 days from your term date to contact you or send paperwork, reach out to them first. Not sure if same company for layoffs as regular term, like someone who just leaves the company, but here is Health Equity number, call and check with them. 877-722-2667.
I think losing your job is a "qualifying event" to justify making an enrollment change for benefits.
Thanks - my term date was actually Feb 2, and I only see an intro letter from Health Equity/Wageworks online - i.e., I don't have the physical packet yet. It's heartening to know that the paperwork contradicts what the HE/WW COBRA rep told me today. Sort of.
You should have a double sided election form in the paperwork you were sent. You can choose whatever you want in any combination.