COBRA Questions

[hamsterjill]

I need DU expertise on health I nsurance. I am currently covered under COBRA from a prior job. I have now started a new job and will become eligible for insurance from the new company on the first of November.

The grace period for my October coverage under the COBRA plan ends October 31st. Payment must be received by the COBRA company by that time. COBRA premiums are very expensive.

What are the pros and cons for paying the October COBRA premium payment, or foregoing making that expensive payment? I mean, if I get to the 31st and haven’t needed medical help, why pay the last premium when I’ll have new coverage the next day.

Does it reflect on credit history? I think there might be a fine on my taxes because I would technically not have had coverage for a month if I don’t pay the October premium, but surely that wouldn’t be as much as a month’s premium.

Discuss please. Thank you.

[MiniMe]

1. It depends

Sometimes insurance companies want to see continuous coverage. Looking forward to seeing other comments on it.

[brush]

2. I would notify Cobra that I have a new job with coverage.

Then shop online for a short term coverage plan that would be much less expensive than Cobra if you don't want to chance going a month without coverage.

[Phoenix61]

3. You say the grace period gets you through Oct 31st

If that means you have coverage through the 31st you would have continuous coverage as your Nov policy would start at 12:01am. I wouldn't risk going without insurance for a month. One slip and/or fall, traffic accident etc and that monthly payment will look like chump change.