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Post by cindosha on Apr 14, 2016 19:03:55 GMT
Dh just recently quit one job and started another. His last day at his old job was 3/31/16 and he started his new one on April 11th. When negotiating everything and filling out forms for the new job, he thought that our medical insurance would start immediately. unfortunately, it doesn't start until June 1st. I am afraid to take the chance with no coverage so we have been looking for gap coverage.
We could cobra our insurance from the old job but it would be $1350.00 per month. And that's just for medical. not dental or vision. My fear is that we get into an accident and we would be bankrupt from the medical bills if we aren't covered.
I found Gap insurance from UnitedHealthOne. It's about $350 per month with a $2500.00 deductible. Since we have never had to do this before, what do I need to be aware of when picking a policy? Will all hospitals take any insurance in the case of heart attack, cancer or an accident? I'm just not sure what to pick.
If anyone has gone through this, will you let me know what to look out for?
Cindy |
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keithurbanlovinpea
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Post by keithurbanlovinpea on Apr 14, 2016 19:20:22 GMT
I have done gap insurance. You should be able to see the same kind of coverage info for those policies as any other insurance. They are usually very, very limited in coverage with small networks. They are typically "policies of last resort" as I call them. In Texas, all hospitals have to admit you if you are in an emergency situation, but they do not have to accept your insurance.
Do your research, but also know that it is temporary and not likely to be used during the gap.
BTW, not sure of your situation but you can go 60 days uncovered and not be penalized by the IRS.
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Post by cindosha on Apr 14, 2016 19:26:14 GMT
the IRS can penalize you for not having medical insurance?  ?? How the hell would they know? Cindy |
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Post by littlemama on Apr 14, 2016 19:27:20 GMT
If you read the COBRA letter, I believe you have 60 days to elect coverage from the date of the notice or from the date of termination, I am not sure which. Find that out. Choose to elect on day 55 or so. You then have 45 days to make payment. If you haven't incurred anything, then just don't pay. If you incur something earlier, then elect and pay at the same time. It is a dirty, dirty loophole in the cobra system that screws employers all the time.
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Post by littlemama on Apr 14, 2016 19:28:45 GMT
the IRS can penalize you for not having medical insurance? ?? How the hell would they know? Cindy Because employers and health insurers are required to report this information to the IRS annually beginning next year. (it was originally this year, but you are not required to file the forms.) |
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Post by cindosha on Apr 14, 2016 19:30:04 GMT
thanks Marianne, I will look at our cobra papers a little closer...
Cindy
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keithurbanlovinpea
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Post by keithurbanlovinpea on Apr 14, 2016 19:30:10 GMT
If you read the COBRA letter, I believe you have 60 days to elect coverage from the date of the notice or from the date of termination, I am not sure which. Find that out. Choose to elect on day 55 or so. You then have 45 days to make payment. If you haven't incurred anything, then just don't pay. If you incur something earlier, then elect and pay at the same time. It is a dirty, dirty loophole in the cobra system that screws employers all the time. Oh I forgot about this gem! I did this the last time I had a gap between jobs |
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keithurbanlovinpea
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Post by keithurbanlovinpea on Apr 14, 2016 19:32:11 GMT
the IRS can penalize you for not having medical insurance? ?? How the hell would they know? Cindy Last year it was mostly self-reporting, this year employers and the insurers under the Affordable Care Act started reporting. There is still a way to self-report when you file taxes, but I imagine we're see some audits popping up in the next few years around this issue as the penalties increase. For the record, the penalties are pro-rated if you are uncovered for part of the year. |
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Post by kellybelly77 on Apr 14, 2016 20:49:00 GMT
the IRS can penalize you for not having medical insurance? ?? How the hell would they know? Cindy Because employers and health insurers are required to report this information to the IRS annually beginning next year. (it was originally this year, but you are not required to file the forms.) Employers are reporting this to the IRS this year for 2015 coverage. 1094's from employers are due to the IRS by June 30 (if the employer files electronically)
Individuals report on their taxes if they have coverage or not. The IRS will then cross check the info you provide with the records your employer submitted. Or, if you had coverage on your own they will audit and you will need to provide them with the 1095 that you received in the mail from your insurance company. The 1095 contains codes to show which month you had coverage and which you did not. I just completed 1,905 of these for my employer last month! Currently though, the employee does not need to do anything with the 1095 except keep it with their tax papers in case they are audited.
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Post by kellybelly77 on Apr 14, 2016 20:49:56 GMT
If you read the COBRA letter, I believe you have 60 days to elect coverage from the date of the notice or from the date of termination, I am not sure which. Find that out. Choose to elect on day 55 or so. You then have 45 days to make payment. If you haven't incurred anything, then just don't pay. If you incur something earlier, then elect and pay at the same time. It is a dirty, dirty loophole in the cobra system that screws employers all the time. But this is what employees do all the time! |
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Post by littlemama on Apr 14, 2016 22:05:16 GMT
If you read the COBRA letter, I believe you have 60 days to elect coverage from the date of the notice or from the date of termination, I am not sure which. Find that out. Choose to elect on day 55 or so. You then have 45 days to make payment. If you haven't incurred anything, then just don't pay. If you incur something earlier, then elect and pay at the same time. It is a dirty, dirty loophole in the cobra system that screws employers all the time. But this is what employees do all the time! Agreed, but it is a loophole that should have been closed long ago. |
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Post by cindosha on Apr 14, 2016 23:23:18 GMT
I guess that I am confused by waiting until day 55 or so. What if one of us had an accident tomorrow? Am I automatically covered by cobra for a certain amount of days even if I haven't signed anything?
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gsquaredmom
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Jun 26, 2014 17:43:22 GMT
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Post by gsquaredmom on Apr 15, 2016 0:09:45 GMT
I guess that I am confused by waiting until day 55 or so. What if one of us had an accident tomorrow? Am I automatically covered by cobra for a certain amount of days even if I haven't signed anything? The way it was explained to me many years ago is that it can be back dated. I never had to use it, so never tested it. |
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Post by snappinsami on Apr 15, 2016 0:21:25 GMT
If you read the COBRA letter, I believe you have 60 days to elect coverage from the date of the notice or from the date of termination, I am not sure which. Find that out. Choose to elect on day 55 or so. You then have 45 days to make payment. If you haven't incurred anything, then just don't pay. If you incur something earlier, then elect and pay at the same time. It is a dirty, dirty loophole in the cobra system that screws employers all the time. This is exactly what we did when we had a gap last year when DH was between jobs. We did the math, and even having to pay full prices for our prescriptions (including DD's Vyvance, which was around $300 a month) it didn't make sense to take the COBRA right away. We wound up not having to do it. But it is a nice loophole to have. |
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Post by kellybelly77 on Apr 15, 2016 0:50:28 GMT
I guess that I am confused by waiting until day 55 or so. What if one of us had an accident tomorrow? Am I automatically covered by cobra for a certain amount of days even if I haven't signed anything? Cobra is always retroactive back to the date you lost your other coverage. So if you wait until the very last day to sign up the effective date will be whatever date you lost your other coverage and it will pay for any bills you incur in the meantime. People wait to see if anything happens. If not, they never sign up. If so, they still have access to the coverage. |
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Deleted
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May 19, 2024 15:13:46 GMT
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Post by Deleted on Apr 15, 2016 3:44:11 GMT
If you read the COBRA letter, I believe you have 60 days to elect coverage from the date of the notice or from the date of termination, I am not sure which. Find that out. Choose to elect on day 55 or so. You then have 45 days to make payment. If you haven't incurred anything, then just don't pay. If you incur something earlier, then elect and pay at the same time. It is a dirty, dirty loophole in the cobra system that screws employers all the time.  I did this before and worked like a champ. Of course, I stayed at home for 43 days because I was too cautious to drive the roads in DFW...  |
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?? How the hell would they know?
I did this before and worked like a champ. Of course, I stayed at home for 43 days because I was too cautious to drive the roads in DFW...