any issues with retroactive COBRA coverage?

[SivaGanesha 2]

Let's say I am between jobs at the moment, but expecting to start a new job and have the health coverage for the new job kick in before the deadline for electing COBRA coverage for the old job expires.

Is there any problem with just not electing COBRA coverage and only doing so, retroactively, if anything catastrophic happens in the meantime? It is supposed to be retroactive but are there any hidden issues?

"It's hard to have fun at 4-way unless your whole team gets down to the ground safely to do it again!"--Northern California Skydiving League re USPA Safety Day, March 8, 2014

[d_squared431 0]

Cobra is very expensive and you will be better off just buying an insurance plan. Main reason to keep insurance is so if you might have any pre existing condition they will be covered with the new jobs insurance package. Most pre existing are covered if you show you have had no breaks in coverage for 24-48 months. If you go 3 months with no medical you then will have a grace period of 6months to a yr(in some cases longer).

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[Andy9o8 2]

Move to Canada, Australia, New Zealand, the UK, Japan or any one of every single country in Western Europe. Problem solved nonexistent.

[riddler 0]

This happened many years ago for me, but I used retroactive coverage, and it worked fine.

1997, I left one large corporation on a Friday. My health coverage with them ended that day. I did nothing to try to bridge healthcare coverage, knowing that I was covered for 60 days, retroactively. The following Monday (three days later), I start a new job with another large corporation. Health insurance at the new company doesn't begin for 30 days, even though I sign up on the first day.

So I'm working, and waiting for the 30 days. Unfortunately, 20 days into it, I get acute appendicitis. I miss one week of work, costs about $13,000 total. New insurance at new company is not yet in effect. So, I call up insurance at old company. They make me pay for the current month of health coverage, retroactive (about $160), and then they pay for everything else. After a few more days, my new health insurance kicks in, and I'm covered.

Had I not gotten sick, I would have had to pay nothing. As it was, I had to pay a little bit of money, and they covered the rest. Case closed. The congress during Reagan years gets the credit for saving me a lot of money - they enacted Cobra. Clinton made it retroactive. Overall, it worked out pretty well for me.

Trapped on the surface of a sphere. XKCD

[SivaGanesha 2]

Quote

Move to Canada, Australia, New Zealand, the UK, Japan or any one of every single country in Western Europe. Problem solved nonexistent.

Thanks to all for their replies. I want to stick around the USA at least until I naturalize as a US citizen which will be soon.

"It's hard to have fun at 4-way unless your whole team gets down to the ground safely to do it again!"--Northern California Skydiving League re USPA Safety Day, March 8, 2014

[DrewEckhardt 0]

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Cobra is very expensive and you will be better off just buying an insurance plan.

Group plan prices are based on average chances of being old, unhealthy, and getting pregnant.

If you're young and healthy, you'll spend less on an individual plan ($100/month vs. $400).

If you're old but not old enough for Medicare you'll spend less on COBRA.

With pre-existing conditions, you may not have a choice.

[Andy9o8 2]

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With pre-existing conditions, you may not have a choice.

Yeap. See post #3.