California health coverage law?

[saxisa]

What is the name of your state (only U.S. law)? California

I have voluntarily quit my job (in CA) to start another position in a week. The company I just left is a wholly owned subsidiary of a parent company based in Des Plaines, IL.

Since there is a week between the jobs, I inquired with the HR dept as to my coverage, and was told that as of midnight on the last day of employment my coverage would end.

I was then told, that if something happened in that week, that when I got the Cobra paperwork (in 1 to 2 weeks) it would retroactively cover me for that period between jobs. But first they asked me to give my OLD insurance card so that treatment could be given and then when the claim was rejected cobra would pick it up.

Sounds pretty wierd to me!

So first, is it legal for the company to dump my health insurance like that in california? And is it true what they said about Cobra coverage?

 

[JustAPal00]

It's true what they said about COBRA, but I would think that if you already had the premiums deducted out of your last check, you would be covered until the end of the month. Of course they would have to deduct any ballance for the month from your final check.

 

[ecmst12]

Every company handles insurance deductions their own way. Some are paid ahead and some behind. It is not at all uncommon for coverage to terminate as of the last day of employment.

Cobra paperwork will take several weeks to arrive most likely, they are allowed somewhere around 30-40 days to send it (I can never remember the exact number). You will be able to sign up to have coverage reinstated retroactively, and from the time you get the papers you have another 60 days to decide. You just have to remember you will have to pay the premium all the way back to the termination date if you want coverage reinstated.

If the insurance at the new job will pick up pretty quickly, then you don't have much to worry about. You are still protected from pre-existing exclusions as long as there is not more then 63 days of no coverage, and if something DOES happen, you will be able to pick up Cobra after the fact. You won't qualify for the subsidy though since you quit, so expect it to be very pricey.

 

[cbg]

There is only one state where an employer is required by law to continue coverage beyond the last day actually worked, and surprisingly enough that state is not California. In all other states, including California, it is both legal and common for coverage to end on the last day of employment.

COBRA is always, always, always, always, always, and by statute retroactive to the date of cancellation. It is 100% legal in every state for the employer to cancel coverage on the date determined by the plan document (which, as above, CAN be and often is the last day of employment) and then reinstate it retroactively once COBRA is elected and paid for.

The employer/administrator between them have a combined 44 days to notify you of your right to COBRA, the rates, and all other administrative details. You have 60 days to make your election, and from the date of election 45 days to make payment. Your employer is legally within their rights to withhold reinstatement until they have received your first payment. However, as indicated, COBRA WILL be retroactive to the date of cancellation.

Nothing you have posted suggests that your employer has done anything illegal or improper.

 

[saxisa]

Ah, great info thanks all!

Bottom line is if something unfortunate happens I am covered. So I just need to be mellow next week