Cobra Insurance Mid Month?????

Question

I have been on cobra since i was laid off from my last job and it is 850.00 per month and i have to pay it monthly, my new insurance starts 5/18/2008 so i called the insurance company to see if that last month would be pro-rated and they said i had to pay for the whole month!!! Is this right??? Why would i want to carry 2 inurances...i could save 400 dollars.

Answer 1

COBRA is a continuation of the group plan and will operate the same as the group plan. It depends on how the plan was set up. If the group allows cancellation mid-month then COBRA will also, if the group doesn't allow cancellation mid-month neither will COBRA. There is nothing you can do about it other than cancel May 1 and go without until your new plan starts.

Answer 2

Yes, you pay for the whole month, but as soon as you have proof of the new coverage, you write and request cancellation effective 05/18/08 and send proof of new coverage, and they'll THEN cancel the policy and prorate the return.