How does coverage with job transition work?

[tater929]

30 y/o, zip code 07506, income $59,280. I'm starting a new job soon, and I have a gap between the previous and new job. I've got a 1-4 week period (depending on my start date, which is still unconfirmed) in which I will be without coverage from either. Is it illegal ill-advised to go without coverage in that gap (whether it be 1 or 4 weeks)?

 

[christeveanity]

@tater929 COBRA is your solution to closing the gap. You may be eligible for COBRA coverage if you work for an employer with 20 or more employees; COBRA is a continuation of your current insurance. It is expensive as you have to pay the full cost of the insurance. Your employer will send you the paperwork with all the deadlines, etc. Read it carefully. You then have 60 days to elect COBRA. There's a possibility that you may not even receive the paperwork until a few weeks after you leave your current position.

Depending on when your new group health insurance takes effect, you may not need to even elect COBRA. But if you do end up electing COBRA, you then have 45 days once COBRA is elected to send in payment.

So, let's say you need emergency surgery one week after you leave your job, prior to your new insurance kicking in. You can elect COBRA, pay the premium, and your coverage will be retroactive to the date you lost your health insurance.

 

[foreverthankful]

@tater929 I agree that COBRA is your gap- and you can wait to sign up too. If you want to be super "on it" go ahead and fill out the paperwork and let your spouse or a friend know where it is, just don't send it in unless you end up needing it. Pre-filling it would be helpful if you're injured to the point of being incapacitated.

As far as if it's "illegal" to not have coverage. There are a few states that still have a mandate to have insurance-

• California.
• D.C.
• Massachusetts.
• New Jersey.
• Rhode Island.
• Vermont (but there's currently no financial penalty attached to the mandate)