Can my employer cancel my insurance before I receive COBRA information?

[Frippledip]

What is the name of your state? California

I quit my job at the end of January (around the 27th), on good terms. It is now March 19, I just discovered that my insurance was cancelled on 3/1. I had always planned on continuing coverage through COBRA, but I never received any information on it. I called my former employer, Pearson VUE, who told me that they notify employees about COBRA through some 3rd party called "Benefit Concepts". They told me that COBRA information was sent to me yesterday. My question is very simple (I live in CA)...I would like to know if it is legal and/or common practice for an employer to terminate my insurance before I can sign up for COBRA? Shouldn't I have been notified? I understand that once I do sign on, coverage will be retroactive to 3/1, but if I need medical treatment tomorrow, why should I have to pay out of my own pocket and then get reimbursed? At the very least this is morally wrong, but I would like to know if Pearson has broken the law.

 

[lkc15507]

I think you should contact your employer immediately to ask them to send COBRA general notice. I think you may well still be within the COBRA election period, but you need to act now. The insurer will indeed show you as terminated until a signed COBRA election is on file. But, as I said, I think you are still probably within the election period. Contact the plan administrator and get that paperwork signed. ie, until the paperwork / COBRA election is made, your coverage IS termed. lkc15507

 

[ecmst12]

It is not only legal, but common practice. They have something like 34 days from the time your coverage is cancelled to send the Cobra enrollment documents, and the process is not normally started until after coverage has expired. You are in fact extremely lucky that your benefits continued for over a month after you were no longer an employee; most companies will term coverage either as of the date of termination, or the end of that month. If there are services that absolutely can't wait until your Cobra coverage is established, you will have to pay out of pocket and be reimbursed.

The Cobra election period is around 60 days so you have plenty of time right now. But make sure you call and ask for another package to be sent if you don't get the first one.

 

[CraigFL]

The date I stop my employees insurance coverage is based on the payments they make. If they are paying in arrears, then I would have stopped your coverage on Jan 31st. If they were paying in advance, then your regular insurance would be good through Feb 29th. It really doesn't matter because you can elect coverage from the date my insurance for you stopped which would mean continuous, no break coverage.

 

[cbg]

Duplicate post