Short Term Health Insurance Problem

[snuggler]

Hi fellow Mustachians!

I am in the process of changing jobs, and I decided to take a few months off between to enjoy life. It is so hard to take vacations in my industry without having to constantly work while vacationing, so I'm planning to take a few 'true' vacations while I can.

My former employer's health coverage ends next week, but my new Obamacare-approved coverage refuses to start coverage until June 1st.

I've been searching online for "gap" coverage, without any luck. The only options I see have very negative reviews. As in, I can't even find one positive review to indicate that they ever have paid the claims for any of their customers.

While I don't mind a large deductible (up to $10-20k), I do need catastrophic coverage for the gap. And I need the company to be reputable.

Also, FYI, I will not be doing any out-of-country vacations until my new Obamacare-approved coverage begins. So the gap coverage only needs to cover US healthcare.

Does anyone have any recommendations on service providers? Thanks in advance!

[Blonde Lawyer]

Will you qualify for COBRA on your old plan? Unless the laws have changed, you have a certain number of days (60 maybe) to elect COBRA and pay your premiums.  If you elect, coverage is retroactive to the day you lost it.  This avoids you paying the high COBRA premium during those 60 days unless you end up needing it. 

[Trifle]

Blonde Lawyer is correct -- the election period for COBRA is 60 days.  Check with your HR department on whether the plan is covered under COBRA (most plans for employers with more than 20 employees are).  And you can wait until near the end of the election period to decide.  For that short a gap period, that may be your best bet.

[Frankies Girl]

Contact your HR department for COBRA coverage information packet to be sent out. You don't have to enroll unless you end up having a health problem before your ACA insurance insurance kicks in. But if you do have something, enrolling in COBRA is retroactive back to your last day of work, so it would work as gap coverage, but most likely you won't have to even activate it.

COBRA is a continuation of your employer sponsored health care, but you would be paying all the costs (instead of most of it paid by your employer) so you do not want to activate it unless you absolutely have to as it would be both expensive and possibly mean you would have to keep it instead of getting on the ACA in June. But it is there if you have a serious health issue that can't wait until June 1st.

I would also check with your HR to confirm that you don't have your employer sponsored health coverage through the end of this month. It is unusual for them to end coverage before the end of the month since they pay in advance for monthly coverage for all employees usually, so you may still be covered with your old policy. I just quit recently and this is exactly how my insurance coverage worked; last day was the 6th, covered through the end of the month, then ACA started up on the first day of the following month...