Question
I am in New Jersey. I gave notice to leave my job on May 2 2005. On the 3rd she called me in and told me she was not going to carry me on my health ins for an entire month. I told her i believed I would be covered until the end of the month. She told me she would call the Ins women and let me talk to her. She then came back and told me they would cover me until my last day, but i didn't talk to the ins lady. She keeps wanting me to sign a form to cancel my ins but i refused to sign anything. I can't get a cobra because we have under 50 people. I think that if she could cancel my ins without me signing-she would have done so already. what do you think
thanks
Answer
Most group insurance plans are prepaid . . . May premiums should have been paid in April. That does not mean your employer is paying on that time frame and may be remitting late.
If employee money is withheld to pay a portion of your premiums, and your employer insists on cancelling your coverage mid month (something the carrier most likely will not approve) there may be some DOL issues to be addressed.
COBRA is federal legislation but many states have their own "COBRA" which provides extended benefits to groups as small as 2 lives. It may be that NJ is one of those states and you may indeed qualify for some form of continued benefits.
That being said, COBRA is usually quite expensive, especially when compared to individual health insurance. If you have a pre-existing medical condition that would prevent or inhibit your ability to get individual insurance, then COBRA might be your best option. Otherwise you will probably be better off pursuing something other than a COBRA plan.
Answer
Being covered until the end of the month when an employee separates is not an automatic. It depends entirely on the particulars of this company's insurance contract/Plan Document. Any number of arrangements are possible but the most common are (1) coverage ceases on the last day of employment, (2) coverage ceases on the date insurance premiums are next due (that could be any day of the month although the 15th and the 30th are the most common), or (3) coverage ceases the end of the month in which employment ended.
Answer
Thanks for the help. I am just wondering why she wants me to sign a form to
end my coverage. Wouldn't she just do it if she could and not need me to sign anything? I have contacted my ins company and will wait to hear from them
thanks
Answer
COBRA is required by Federal law if your employer has over 20 employees, not 50. Your employer might have less than fifty employees, but if he has more than 20, he has to offer you COBRA, period. Of course, it's your choice whether or not to accept it. But he has to offer it.
Answer
there are under 20 employees. i was told today that i can get something called continuing care but i am still trying to find out why she is so hot to get me to sign this paper to end my coverage.
thanks