Hello, my wife started COBRA health insurance coverage (Aetna) from previous employer group plan in 02/2009 after being layed off. In May, she began paying reduced rate premium thanks to ARRA subsidy. This employer went out of business on 9/15/09. When attempting to pay September premium she found out (by former HR rep) that health coverage would cease at end of month (all this according to HR rep). We are aware that COBRA ends after an employer goes out of business, but isn’t there an extension of time granted to look for other insurance options and not just less than two weeks? Can’t we just pay the insurer (Aetna) directly for some time period? FURTHER, the ARRA COBRA subsidy seems to guarantee up to 9 months of reduced premiums. We’ve had only 4 months worth. Is there any law protecting us from having to seek new insurance on such short notice and provide some reasonable time period extension? Her medical issues and pre-existing conditions are quite complicated and make finding the best choice very time-consuming. Thanks for any advice and opinions on this matter. Mike and Marilyn.
Answer by Moderator - Monday, October 19, 2009 @ 11:20am No CommentsNo comments yet. Leave a comment |
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There is no law that guarantees you the right to continue on your COBRA coverage when the group plan ceases to exist. Your best option, if you have not already done so, is to contact the insurance carrier and inquire about a guaranteed issue conversion option. They may provide you individual health plan options as long as you can prove HIPAA eligibility. To be HIPAA eligible, you need 18 months of continuous coverage. Any coverage that your wife had prior to 2/09 will apply to this, as long as there was not more than a 60 laps in coverage before going on the Aetna group health plan. If your employer offers group health insurance, you should be able to add your wife to your policy as a dependent without waiting for the open enrollment period.
