I took the package and have COBRA for 1 year, and recently found new job. Thinking I want to stick with Vz paid Cobra for 1 year, and then take health coverage at new job (after 1 year). Is this allowed / recommended?
11 replies (most recent on top)
Going to check with new job, but timing should be that I can enroll for next year's bennies, and keep Cobra in the meanwhile. You?
Here are statements I found online:
Rolling off of COBRA coverage is a qualifying event that opens a special enrollment period (https://www.uhone.com/learn/qualifying-events/lost-cobra-benefits)
If your COBRA is running out, Yes, you can change — you qualify for a Special Enrollment Period
(https://www.healthcare.gov/unemployed/cobra-coverage/)
BUT:
from https://www.shawhankins.com/resource/loss-cobra-subsidy-qualif-event-change-elect/
12.13.2017
Would the loss of a COBRA subsidy be a qualifying event to change plan elections?
Sometimes new employees receive employer-subsidized COBRA coverage from their former employer. When they do so, they often seek to delay their enrollment in their new employer’s plan in order to take advantage of the subsidized COBRA. However, there’s an argument that the end of the subsidized coverage wouldn’t be a qualifying event under Section 125. While there’s one permissible qualifying event that might allow for such a qualifying event, it isn’t clear since the IRS hasn’t provided direct guidance......
https://www.shawhankins.com/resource/loss-cobra-subsidy-qualif-event-change-elect/
So, maybe not a qualifying event...?
I asked HR at my new job and checked their policy. The end of COBRA is not considered as a qualified life change event. I left Verizon on March 22, so the COBRA will cover through 5/31/20. However, my new job starts their benefit year from 8/1/19 thru 7/31/20. If I continue COBRA from 6/1/20 through 7/31/20, then I will lose Access Only eligibility for VZ retirement health insurance. I either have to waste 10 month VZ paid COBRA or find a short term coverage for 2 months.
I wonder if end of COBRA coverage after 14 months would be considered a qualified life change event, allowing us to then take our current employer's insurance. Thoughts?
be aware that COBRA max is 18 months. So if you are a VSPer with max tenure, you get 14 months paid for and you can continue only for 4 more months at your cost. That article had good points about weighing costs around coverage/already paid deductibles and the time intervals allows for changing coverage with your new employer. If you have to pay for the COBRA yourself, it's probably more than likely you'd do better with the new employer coverage. Health care costs in this country are outrageous and we've been shielded having such good coverage. Good luck.
This link surprised me, it looks we can use Cobra even when we find a new job:
https://money.stackexchange.com/questions/65910/if-i-voluntarily-change-employers-can-i-keep-my-health-insurance-through-cobra?rq=1
For VSPers, Verizon is paying the employees share of the cobra premium for the same number of weeks they are paying you.
I will stick with Vz paid COBRA for 14 months, then sign up the insurance with new employer during annual enrollment.
Are you sure you are talking about COBRA. COBRA is for 18 months and you absically pay both yours and Verizons share of premium. Or are you taking about the medical coverage given to VSP people where you pay only for your share?
Legally COBRA ends whenever you are eligible for a new group plan. However this is never enforced. The only problem will be your new company will allow for enrollment only when you join and their yearly signup
im wondering the same thing but dont have an answer