Insurance Benefits

[2Curious]

What is the name of your state (only U.S. law)? AZ
When you leave a company how long before your insurance and other benefits are good till? I believe it varies from state to state. So do you have 30 days or is it instantaneous?

 

[pattytx]

It's whatever the specific plan rules say it is. You'll have to either read the SPD (Summary Plan Document), which you must be given upon request, or call your benefits representative.

Texas is the only state which has a law regarding cessation of coverage for medical insurance only, relative to termination date, and even that might have been repealed by now.

 

[cbg]

Prior to COBRA, there used to be a lot of state-based rules regarding the continuation of insurance. COBRA made most of them obsolete.

No state at present has a 30-days-after-termination law. At one time post-COBRA, Texas had a law that required coverage to continue to the last day of the month in which employment ended, but when I went looking for it recently I not only couldn't find it, but none of my Texas colleagues could find it either. So as Patty says, it may have since been repealed.

No other state to my knowledge has an actual law dictating how long coverage continues after termination. It depends entirely on what the plan document says. In my experience, and I have a LOT of experience, about 50% of plans cover till the last day of the month in which employment ends, and the other 50% terminate coverage on the last day of employment, but it's policy specific, not state or Federal law.