Do I need to pay for COBRA-- 5 Days between Jobs?

Question

I am leaving one job on a Friday and begin another job on the following Thursday. I was told my Health Insurance ends on my last day of work and then my new employer begins on my first day. I am trying to understand my options with COBRA. I read that I could take 14 days to elect to participate and then submit payment. I was thinking that would provide me a way to not pay the premium for 5 days unless something comes up and I truly need insurance. Is this possible? My current employer said that I would need to pay the premium up front. Is that correct? ANY HELP...would be great!

Answer 1

The 2 answers above me are correct. You will only have to pay that premium if you end up using your health coverage

Answer 2

Here's how the timeline goes:

Your old employer has 30 days to notify your old insurance that you have terminated. The insurance has 14 days to notify you of COBRA. You have 60 days to elect. The COBRA coverage will be retrospective back to your termination date as long as you pay the premium. So as long as your new insurance has no waiting period, your new insurance will be in effect before your employer even notifies the old insurance.

http://www.dol.gov/ebsa/faqs/faq_consume...

Answer 3

You can retroactively buy COBRA insurance (forget the time period but much longer than 5 days).  So do nothing unless something bad happens to you, and then you can buy it (effective your last day at the old company).  The government sponsors COBRA so that there are not any issues with switching jobs and your old employer should have informed you of this.

Answer 4

Cobra payments are up front.

Just double check with your new employer to make sure there is no waiting period. If coverage starts on your first day, you can roll the dice and hope nothing happens for the 5 days between jobs.

Answer 5

That sounds like a great career change.  I don't know too many employers that offer full health benefits the moment you are hired.  most take 30 to 90 days to kick in with benefits.  This is where the COBRA comes in.  If you get 14 days to elect coverage and you start a new job with full benefits 5 days after the old job- you are golden and don't need to pay anything up front typically.  I am not sure about your current employer telling you that you have to pay up front.  Whatever is in writing is what goes- no matter what the employer says.  I would call my benefits person with the insurance company to get the real scoop.

Here is an excerpt from the governments website on cobra.

<<<<The initial premium payment must be made within 45 days after the date of the COBRA election by the qualified beneficiary.  Payment generally must cover the period of coverage from the date of COBRA election retroactive to the date of the loss of coverage due to the qualifying event.  Premiums for successive periods of coverage are due on the date stated in the plan with a minimum 30-day grace period for payments.  Payment is considered to be made on the date it is sent to the plan.

If premiums are not paid by the first day of the period of coverage, the plan has the option to cancel coverage until payment is received and then reinstate coverage retroactively to the beginning of the period of coverage.>>>>

Good luck with the new job!