Gap Insurance

[V1 Rotate]

What are some ideas or experience anyone has had with changing jobs and needed health insurance for a family of 3 for a few weeks until the new insurance kicks in? Besides COBRA, of course.

Thanks.

 

[Swass]

How many weeks? Generally you have 60 days to elect coverage for COBRA after the triggering event. If you will be covered under another plan within this 60 days then don't elect. Let's look at it this way for example:

If you are coming up on the end of you waiting period for your new plan to take effect and 7 days before that date your kid breaks his ankle in such a way that surgery needs to be performed (screws and plates). What you would do is then go back to your ex-employer (or whoever administrates your old plan) and elect the COBRA (as long as it is within 60 days or the triggering event). They then would notify the Insurance Company and you would be billed the amount due the insurance company from the date of the triggering event, thus, no lapse in coverage. The plan would then pay for the surgery. Remember that the COBRA costs are what the employer pays for the plan plus an Administration fee (2%), so you would pay 102% of the cost of the insurance (companies usually pick up most of the cost of the plan, not so with COBRA). It all depends on how long the gap is. You may not even have to get the COBRA, as in, if nothing happens to warrant a claim during the waiting period. Look at it as retro-active in this case, no claim means no election means no premium payment.

There are individual Gap policies (normally disaster type policies) available form most companies (Celtic, Megahealth, BCBS etc.) but they are typically last resort and not very benefit rich.

Sorry for the ramblings.... and to completely confuse everyone.

 

[V1 Rotate]

Thanks....good info.

 

[Swass]

Thanks, That's what I do for a living. Employee benefits (not confusing people).

 

[futurepizzaguy]

Try ehealthinsurance.com. It has an option for short term coverage. I used it for 60 days and was much much cheaper than COBRA! I chose a company that was a part of United Healthcare and for a comparable family plan....it was around 200$/month compared to COBRA around 800$/month. I think I heard of the website from a previous post. Shop around before you go with COBRA....

 

[V1 Rotate]

Thanks.

 

[Swass]

Good advice above. You still havent said how long the gap will be.

There are some cases where COBRA still makes sense as it is a true group plan, remember, you don't have to elect it for 60 days. Gap plans tend to be bare bones, with little to no benefits and huge deductibles. If you have a large claim like the one I talked about above a Gap plan could spell serious trouble as the coverages are now where near what you are used to seeing with a group plan. Chances are you won't have a situation like that and can roll the dice with a gap plan for $200. The alternative is if you can get by with the 60 day wait and are on your new insurance and have incurred no claims, then you paid nothing for the option of falling back on your old employers' group plan.

 

[V1 Rotate]

Less than 30 days. From April 4th - May 1st.

 

[fischman]

Less than 30 days??? screw it. just stay in your house and eat nothing that requires the use of fire, knives, or olive pits. You'll be fine!!!:smash:

 

[blueridge71]

I have used Swass' method in the past for short-term gaps in insurance. If it is going to be longer, check with your local insurance agent. Independent agents in particular have a variety of affordable health insurance products, and they can probably save you money on your home and auto insurance at the same time.

 

[V1 Rotate]

Less than 30 days??? screw it. just stay in your house and eat nothing that requires the use of fire, knives, or olive pits. You'll be fine!!!:smash:

Yeah, meanwhile my wife and kid get into an accident. If it were just me and since I'm going to be sitting in a classroom or hotel everyone of those days, then I wouldn't worry about it either. Thanks for all the advice given so far though everyone.

 

[Swass]

If your wife and kid get into an accident then elect the COBRA. 30 days falls within the 60 day period you cab retro-act the COBRA. If you need it the COBRA will be there, if you don't then you would be fine not getting any other insurance. You could get on the new plan without having to spend the money on a gap policy. Whatever you want, and whatever helps you sleep better.

I would go without coverage and elect the COBRA only if your out of pocket for ANY claims would exceed the premium for that month. PM me if you are unsure and I will give you my contact info, it's hard to give you all the facts on FI (I'm not selling anything, I promise).