Group Coverage Extension for 30 days?
Q: I am leaving my current company on January 12th. I have had health care benefits at this company for the past 8 years. I have a new job lined up but the health insurance is not effective until March 1, 2007. I heard (not through my company) that my current employer’s health benefits will cover for me for 30 days past my termination date, is that true?
A: This depends on several factors, most importantly is the exact date of your termination. Health insurance premiums are paid in advance by your employer, so your coverage is effective until the end of the month in which you are terminated. For example, let’s say that you are terminated on January 2nd, your coverage will have been paid through January 31st, so you will have 29 days of coverage past your termination date. If you are terminated on January 30th, you will only have one day of coverage remaining until your benefits expire. This is the common explanation, but it may vary based on state and size of company. Once your benefits expire, you should be given the option to continue on the group health plan under COBRA regulations. Federal COBRA laws apply to companies with 20 or more employees. Some states have mini-COBRA laws that apply to companies of smaller size. And, some states have other insurance laws that may be applicable to your situation. If you can answer a couple of other questions, we can provide you with a more definitive answer:
1) In which state is your employer based? (State where insurance policy is issued from)
2) Is your employer subject to federal or state COBRA laws?
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