Changing Jobs - Health Insurance: AHHHH

milehigh

In Colorado if it matters. So I just got the offer letter for a sweet new job. Better pay, benefits, the whole thing. I'll be giving my notice to my current employer next week. That's all great. However in this offer letter, it states that the sweet new health insurance benefits don't take effect until 60 days after employment begins.

This leaves me with an obvious issue of what to do during those 60 days. My first thought is that I'm a young and relatively healthy individual and 60 days isn't that long. Are there are any serious consequences of just letting it lapse while I'm waiting for the new coverage to kick in? Obviously if I have serious health issues during that time I'm screwed, but other than that. If that's a horrible idea, should I be looking at COBRA or are there other options? I'm going to talk to the HR rep for the new company next week, but wanted to see what individuals here have dealt with in these circumstances. Thanks in advance!

BlindZenDriver

Congrats on the new job.

Whatever you do don't risk being without insurance. Should something bad happen you could find yourself not only needing treatment but also buried in debt - just one day in a hospital can easily go into a five figure expense.

I would think the HR function at your new job can advice you what is the best action - most likely their health insurer can offer you a deal.

webguy20

You'll most likely be offered COBRA for your time between insurances. Fucking hella expensive though.

Feral

milehigh wrote:

In Colorado if it matters. So I just got the offer letter for a sweet new job. Better pay, benefits, the whole thing. I'll be giving my notice to my current employer next week. That's all great. However in this offer letter, it states that the sweet new health insurance benefits don't take effect until 60 days after employment begins.

This leaves me with an obvious issue of what to do during those 60 days. My first thought is that I'm a young and relatively healthy individual and 60 days isn't that long. Are there are any serious consequences of just letting it lapse while I'm waiting for the new coverage to kick in? Obviously if I have serious health issues during that time I'm screwed, but other than that. If that's a horrible idea, should I be looking at COBRA or are there other options? I'm going to talk to the HR rep for the new company next week, but wanted to see what individuals here have dealt with in these circumstances. Thanks in advance!

First off, clarify when your old insurance ends. At some employers, your insurance will end on the last day of employment. At other employers, it will end with the last calendar month of employment - so if you quit effective February 2, you have insurance until February 28.

If you are healthy, than going without insurance for 60 days or less is not that terrible of a risk. Don't get me wrong: it is a risk! If you get injured during that period of time, you could be facing a hefty emergency room fee costing thousands of dollars. However, it is possible to get such fees reduced or forgiven entirely. It's a risk, but it is a manageable one.

However, the big "fuck you" comes when you let your insurance lapse for 63 days or more. With a break of 63 days or more, the new insurance company can refuse to cover pre-existing conditions for 6-12 months. This means if you get sick during the period without insurance, and that period is less than 63 days, you can just wait to go to the doctor when you get your new insurance. If it's more than 63 days, and you get sick during the no-insurance period, then you might have to wait months. If you get injured, and you need follow-up care - say, getting a cast removed, or getting stitches removed - and your no-insurance break was less than 63 days, then the follow-up care will most likely be covered. If your insurance break is more than 63 days, then it most likely will not be covered.

Here's what I would do:

1) Find out exactly (to the day) when my old insurance will lapse.
2) Find out exactly (to the day) when my new insurance kicks in.
3) Find out exactly how much COBRA will cost.
4) If the break in coverage is more than 63 days, I would do everything in my power to pay for COBRA, including taking out debt.
5) If the break in coverage is less than 63 days, and I can afford the COBRA cost, I would pay for COBRA.
6) If the break in coverage is less than 63 days, and I can't afford COBRA, I would take the risk and go without it.

Thanatos

Feral wrote:

milehigh wrote:

In Colorado if it matters. So I just got the offer letter for a sweet new job. Better pay, benefits, the whole thing. I'll be giving my notice to my current employer next week. That's all great. However in this offer letter, it states that the sweet new health insurance benefits don't take effect until 60 days after employment begins.

This leaves me with an obvious issue of what to do during those 60 days. My first thought is that I'm a young and relatively healthy individual and 60 days isn't that long. Are there are any serious consequences of just letting it lapse while I'm waiting for the new coverage to kick in? Obviously if I have serious health issues during that time I'm screwed, but other than that. If that's a horrible idea, should I be looking at COBRA or are there other options? I'm going to talk to the HR rep for the new company next week, but wanted to see what individuals here have dealt with in these circumstances. Thanks in advance!

First off, clarify when your old insurance ends. At some employers, your insurance will end on the last day of employment. At other employers, it will end with the last calendar month of employment - so if you quit effective February 2, you have insurance until February 28.

If you are healthy, than going without insurance for 60 days or less is not that terrible of a risk. Don't get me wrong: it is a risk! If you get injured during that period of time, you could be facing a hefty emergency room fee costing thousands of dollars. However, it is possible to get such fees reduced or forgiven entirely. It's a risk, but it is a manageable one.

However, the big "fuck you" comes when you let your insurance lapse for 63 days or more. With a break of 63 days or more, the new insurance company can refuse to cover pre-existing conditions for 6-12 months. This means if you get sick during the period without insurance, and that period is less than 63 days, you can just wait to go to the doctor when you get your new insurance. If it's more than 63 days, and you get sick during the no-insurance period, then you might have to wait months. If you get injured, and you need follow-up care - say, getting a cast removed, or getting stitches removed - and your no-insurance break was less than 63 days, then the follow-up care will most likely be covered. If your insurance break is more than 63 days, then it most likely will not be covered.

Here's what I would do:

1) Find out exactly (to the day) when my old insurance will lapse.
2) Find out exactly (to the day) when my new insurance kicks in.
3) Find out exactly how much COBRA will cost.
4) If the break in coverage is more than 63 days, I would do everything in my power to pay for COBRA, including taking out debt.
5) If the break in coverage is less than 63 days, and I can afford the COBRA cost, I would pay for COBRA.
6) If the break in coverage is less than 63 days, and I can't afford COBRA, I would take the risk and go without it.

Pretty much everything Feral says, the only thing I wanted to mention as an option is that if the break will be more than 63 days, you could pay for just one month of COBRA, then go without for the remainder; it's not an all-or-nothing kind of thing.

zepherin

Risk management time. Going without insurance is a risk, however there are ways to hedge against it and make it less of a risk. First get a physical before you leave your current company. And if dental is the same get a teeth cleaning too. And avoid risky behavior for 60 days. Nothing is ever fool proof, however as long as your healthy from your doctors end, and your not entering MMA tournaments or stunt driving. You will probably be alright. Now if your really worried and want to get cobra, you can. However it's ridiculous. At my last job Cobra would have been 700 a month and my current it would be 850.

Kipling

Ask when you insurance officially ends. Some companies will cover you monthly, meaning leaving March 1st covers you for the month of March.

Also, COBRA backdates, but ask ask ask. I believe if you pay within the 60 days, it is as if you never had gap in coverage. Ask your insurance company or HR. They will know. And then work out the dates and whether there is a gap.

If you do this, tell someone, in case something bad happens and you do need to activate it.

Pure Din

Have you gone to college? The alumnae association from my undergrad let people buy short-term health insurance through a company called Meyer that covers no routine healthcare or pre-existing conditions, but is a lot cheaper than COBRA. My grad school alumni association offered it too, I think it's a common thing.