Cobra and state insurance plan

[pappu]

My child just got accepted into a state health insurance plan for people with low or no incomes.

However, i have already paid the cobra premium (plan through my previous employer) till the end of this month.

Will there be any harm, if there i san overlap of the two plans for a few days.

What will happen if there is a claim?

[ecmst12]

If there is a claim, it goes to Cobra first and the state plan second. State plans come after everything.

[pappu]

Should I inform both the carriers about the other plan or is it automatically tracked.

The Cobra plan has heavy deductibles and out of pocket in case of ER use.

The state plan covers virtualy everything after a small copay.

Will my benefits be affected in any way if the claim goes first to Cobra.

[cbg]

First, there is no legal issue whatsoever with having two plans. They will *probably* ask if there is other coverage but if they do not, it is your responsbility to tell them. Failure to do so can be considered fraud.

The COBRA plan is the primary carrier and you must submit to them first.

The COBRA carrier will make whatever payment is due, and send you a statement showing what they paid. This Explanation of Benefits (abbrieviated EOB) goes to the state plan carrier along with the bill. They will then make payment on what is left, taking into consideration what has already been paid.

Neither plan will "punish" you for having a second plan, if that is what you mean by your benefits being affected. But the two plans will coordinate their payments. In total, you should receive what is payable by the better of the two plans.

Example: Bill is for $100. (NOTE: This is the standard way plans coordinate. It is possible that your two plans coordinate slightly differently, but this is the most common way.)

The primary carrier will pay $10. The secondary carrier, if it were primary, would pay $90, leaving you a $10 balance.

The primary carrier will pay $10. The secondary carrier will subtract the $10 that has already been paid from the $90 they would have paid if they were primary, and pay $80. You pay the $10 balance.

Clear as mud?