COBRA eligibility

[Exflyboy]

The client company is changing its supplier of contract labour.

New company is keen to get me on their books ASAP (of course). Their HC doesn't kick in for 60 days.

They tell me the solution is COBRA which I get from my old employer.

I got onto the DEPT of Labor website and can only find COBRA qualifying events as "termination and reduction of hours". It does NOT say "resign".

So the question is how do I qualify for COBRA? I would have to be terminated right? Of course I am having to jump through hoops to solve THEIR problem.

[G-dog]

If I understand your question - you are eligible for COBRA if you quit a job (or get terminated / laid off).

One nice thing is that you can wait to buy in and avoid the cost until you need coverage (unless something has changed since I last checked this).

But, I am not really sure that COBRA is the right solution. What company takes 60 days to get you HC coverage? That sounds like some cheap ass bullshit to me (pardon my French).

[Exflyboy]

Oh it IS cheap assed bullshit!

So even though the Dept of Labor website says the only qualifying events are termination or reduction in hours.. I can still get COBRA if I simply quit my job?

They will be paying the premium.. and it needs to be grossed up right?.. In theory I will have to pay the premium with taxed money, but if the new company gives me money thats untaxed income!

[ixtap]

In this case, termination of employment means that it is ended, with no restrictions to how it ends. That is, it doesn't matter of you terminate the employment or your employer terminates you.

[Dollar Slice]

I believe "termination" of employment in this context just means "end" of employment, as in: you no longer work there. It can be voluntary.

Where I live (New York) the state website is clear about it:

If I voluntarily leave my employment, is that considered to be a qualifying event?

Answer: Yes. Unless the covered employee was terminated due to gross misconduct, it does not matter whether the employee voluntarily terminated employment or was discharged.

[Exflyboy]

Thanks all I appreciate the clarification.. I sure wish it was not open to interpretation on the Dept of Labor website!

[G-dog]

I was eligible for COBRA when I quit a job to follow Spouse for their new job (moved to a different state).  So I only know via experience. 

It would be nice if terminology was consistent (termination).

If they are paying, of course get coverage up front.  Also, will the new HC via employer have the option of the same provider such that you won’t lose $ toward OOP max or have to start deductible again?

[Exflyboy]

I was eligible for COBRA when I quit a job to follow Spouse for their new job (moved to a different state).  So I only know via experience. 

It would be nice if terminology was consistent (termination).

If they are paying, of course get coverage up front.  Also, will the new HC via employer have the option of the same provider such that you won’t lose $ toward OOP max or have to start deductible again?

Well if I can back-date coverage if something happens, then it makes sense to pocket the money they give me (to cover my COBRA) and not pay for COBRA no??

Actually we usually spend roughly $zero on HC and have not had our HC spend spend any $$ on our behalf so far this year, so its a non issue.. at least so far anyway.

I think the bigger issue is that I am getting jerked around and my patience is wearing thin!

[Exflyboy]

I went on COBRA when I voluntarily quit my job. So the others are correct that "termination" just means "end of employment" in your case. IIRC I had 30 (or maybe 60) days to pay the COBRA premium before it expired. So had I been in your situation (i.e.a crazy person who WANTS to work ;-)) I would just wait to pay it if I didn't use it during that time until my new job health insurance started.

Yeah it looks like a pretty good deal if they are paying ME for it.. Then I DON'T pay for it..:)

For some reason the novelty of this job is wearing a bit thin..;)

[yachi]

I had this issue when I switched employers about 8 years ago.  I think it was 60 days.  This employer had a lot of construction guys that didn't always make it to 60 days.  The issue was once the policy was made (maybe years before I joined) they couldn't make exceptions for individual hires.  When I joined they said, don't worry, you can rely on Cobra, which can take effect retroactively if you happen to have some expensive health needs during that time.  It so happened that my wife was expecting and was due during the 60 days.  So I notified them about that (I didn't consider it relevant prior to this) and we came to an agreement that they would cover COBRA.  Mine was an open/shut stopping one W2 employer and starting another.

[Runrooster]

I was eligible for COBRA when I quit a job to follow Spouse for their new job (moved to a different state).  So I only know via experience. 

It would be nice if terminology was consistent (termination).

If they are paying, of course get coverage up front.  Also, will the new HC via employer have the option of the same provider such that you won’t lose $ toward OOP max or have to start deductible again?

Well if I can back-date coverage if something happens, then it makes sense to pocket the money they give me (to cover my COBRA) and not pay for COBRA no??

Actually we usually spend roughly $zero on HC and have not had our HC spend spend any $$ on our behalf so far this year, so its a non issue.. at least so far anyway.

I think the bigger issue is that I am getting jerked around and my patience is wearing thin!

I changed jobs voluntarily this past September and they were required to offer me COBRA.  I didn't take it, however, as getting a bronze level plan through Obamacare was a LOT cheaper.  I qualified for premium tax credits, so it was very cheap, but even without that you can cut costs if it matters.

I would encourage you to have some type of coverage - whether something happens in those 60 days or not - because there can be ramifications long time down the line (a year or longer, I think) if you are diagnosed with something and then you admit you were without coverage those 2 months.