If terminatated from a job, is your employee health insurance immediatley terminated as well?

Question

This insurance is employee participated...the cost of the insurance is paid for by the employee. How long after termination are you covered by the insurance you pay for?

Answer 1

The insurance provider should provide you your options for insurance after you are terminated. If they have not yet contacted you, I would call them right away and ask about COBRA.

Answer 2

Depending on the State you live in an the size of the employer, there may be some variance in the rules.

Generally, you are covered until the end of the month in which you are terminated.  After which point you will have some COBRA option.  Below a certain point (20 employees in the company) there is usually a state appointed COBRA option.  Cobra can last, again, depending on your state, between 18 and 36 months, and can cost between 102% and 110% of the true cost of the plan.

Depending on your health history, you may find it most cost effective to find an individual plan, but I have seen cases where COBRA was less expensive that the individual alternative (Blue Cross plans, mostly).  Don't go online unless you know exactly what you want.  Find an independent broker who will work for you (and not the insurance company) to find what works best for you.

Answer 3

Lori S. has posted an excellent response to your question. I would only add, as others have, to shop online for an individual plan if you have no serious pre-existing conditions that need to be covered. The Blue Cross in your state is an excellent starting point. Their site will have pricing, and an online application.

As you may have noticed if you qualify for COBRA, it is expensive. Not that COBRA is expensive, it simply reflects the true cost of group insurance, plus 2%. Individual plans are almost always less expensive, the downside is that these policies may exclude certain pre-existing conditions, or you may be denied. Coverage is very similar between group and individual, though maternity isn't covered on individual in most cases.

Answer 4

The employer decides how long after termination you are covered. Some terminate the coverage immediately, some cover you until the end of the month of termination. If COBRA (continuation of insurance) is going to be offered, the employer has 30 days to notify the insurance company of your termination. Then the insurance company has 14 days to send you the COBRA info. From that point, you have 60 days to elect or refuse the coverage that YOU will have to pay for up to 102% of the premium that the employer was charged. You will have 45 days from the notification of the COBRA to make the premium payment. COBRA usually lasts 18 months unless there is a second qualifying occurance (disability or the like) or unless you don't make the payment.

Answer 5

You have to sign up for COBRA insurance, and it lasts for about 1 year.

Answer 6

Depends on company & insurance carrier policies.

Also, COBRA is not mandatory for EVERY employer, it is based on the size of the business and the insurance coverage.  My employees have NO COBRA options.

By law if you qualify for COBRA you will receive an information letter in the mail within 30 days.  

BUT Cobra is EXPENSIVE and you are almost always better off going now (before coverage lapses) and buying your own individual policy. Try www.bluecrossblueshield.org

good luck in your job hunt

Answer 7

Depends on the seperation package, but usually you are given the opportunity to participate in the plan for 6 months after termination, but you have to pay all of the premiums. Look up COBRA benefits, its all stipulated in the law.    tba