COBRA: Anyone know if you qualify if you resign?

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retiringtype
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COBRA: Anyone know if you qualify if you resign?

Post by retiringtype »

Hi all. This is an addendum to my last post. Having trouble finding an answer I can depend on.

The question is: Are you eligible for COBRA insurance when you resign? Everything I see on the internet says "yes." But I was hoping to maybe hear from someone with first hand experience, just to be doubly sure. Don't want to jump without a net.

My company's health insurance plan is quite good. I'd much prefer COBRA to anything I can get on the marketplace.
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dm200
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Re: COBRA: Anyone know if you qualify if you resign?

Post by dm200 »

retiringtype wrote: Mon May 07, 2018 2:22 pm Hi all. This is an addendum to my last post. Having trouble finding an answer I can depend on.

The question is: Are you eligible for COBRA insurance when you resign? Everything I see on the internet says "yes." But I was hoping to maybe hear from someone with first hand experience, just to be doubly sure. Don't want to jump without a net.

My company's health insurance plan is quite good. I'd much prefer COBRA to anything I can get on the marketplace.
Yes - that is my understanding -
ScooterBob
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Re: COBRA: Anyone know if you qualify if you resign?

Post by ScooterBob »

Yes- first hand knowledge...I worked in a department that got this ready for folks that quit...

Bob
codedude
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Re: COBRA: Anyone know if you qualify if you resign?

Post by codedude »

Yes, I used once after resigning.
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dm200
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Re: COBRA: Anyone know if you qualify if you resign?

Post by dm200 »

ScooterBob wrote: Mon May 07, 2018 2:25 pm Yes- first hand knowledge...I worked in a department that got this ready for folks that quit...

Bob
I have qualified for COBRA when I resigned as well. No problems..
mhalley
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Re: COBRA: Anyone know if you qualify if you resign?

Post by mhalley »

I used cobra when I retired.
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Watty
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Re: COBRA: Anyone know if you qualify if you resign?

Post by Watty »

mhalley wrote: Mon May 07, 2018 2:27 pm I used cobra when I retired.
+1

I did too.

But not all companies are required to offer Cobra. You would want to check on it but as I recall companies with less then 50 employees may not be required. I'm not sure about non-profits either.

Your state laws may provide additional or longer coverage.
BeneIRA
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Re: COBRA: Anyone know if you qualify if you resign?

Post by BeneIRA »

If your company offers COBRA, yes, you will be eligible if you resign. The only exception is “gross misconduct.” In all my years, I have seen that used one time. Let’s just say that person earned the designation through more than one illegal action. If that is not you, you will be offered COBRA as long as your company offers it.
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Steelersfan
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Re: COBRA: Anyone know if you qualify if you resign?

Post by Steelersfan »

Watty wrote: Mon May 07, 2018 2:32 pm
But not all companies are required to offer Cobra. You would want to check on it but as I recall companies with less then 50 employees may not be required. I'm not sure about non-profits either.

Your state laws may provide additional or longer coverage.
The cut-off is 20 employees, and the company must have a medical benefits plan.
Mitchell777
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Re: COBRA: Anyone know if you qualify if you resign?

Post by Mitchell777 »

I used it after resigning about a year ago. As I recall It does not matter how you leave other then being fired for some illicit or illegal activity
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Pajamas
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Re: COBRA: Anyone know if you qualify if you resign?

Post by Pajamas »

I have used COBRA after resigning twice.

ACA may be less expensive for you, so don't automatically take COBRA without crunching numbers. If you have already paid towards a deductible, it might work out best to take COBRA until the next calendar year even if you would otherwise take ACA coverage.
dknightd
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Re: COBRA: Anyone know if you qualify if you resign?

Post by dknightd »

retiringtype wrote: Mon May 07, 2018 2:22 pm Hi all. This is an addendum to my last post. Having trouble finding an answer I can depend on.

The question is: Are you eligible for COBRA insurance when you resign? Everything I see on the internet says "yes." But I was hoping to maybe hear from someone with first hand experience, just to be doubly sure. Don't want to jump without a net.

My company's health insurance plan is quite good. I'd much prefer COBRA to anything I can get on the marketplace.
You pretty much have to ask your employer. You may or may not be covered by cobra laws. I would be reluctant to depend on ACA
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JoeRetire
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Re: COBRA: Anyone know if you qualify if you resign?

Post by JoeRetire »

retiringtype wrote: Mon May 07, 2018 2:22 pm The question is: Are you eligible for COBRA insurance when you resign? Everything I see on the internet says "yes." But I was hoping to maybe hear from someone with first hand experience, just to be doubly sure.
Yes. Been there, done that when I resigned/retired. The reason for separation isn't important.

Remember that COBRA can be expensive. In my case I paid 102% of the premiums - the employee's share, the employer's share, plus a 2% administrative fee. It was a good plan, but expensive.

The next year we went to an ACA plan. Due to our low income, we ended up with a better plan, far lower deductible, at about 1/3 the cost. All the same doctors, just much cheaper.
Last edited by JoeRetire on Mon May 07, 2018 8:13 pm, edited 3 times in total.
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JoeRetire
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Re: COBRA: Anyone know if you qualify if you resign?

Post by JoeRetire »

Watty wrote: Mon May 07, 2018 2:32 pm
mhalley wrote: Mon May 07, 2018 2:27 pm I used cobra when I retired.
But not all companies are required to offer Cobra. You would want to check on it but as I recall companies with less then 50 employees may not be required. I'm not sure about non-profits either.
https://www.dol.gov/sites/default/files ... -cobra.pdf

"COBRA generally applies to all private-sector group health plans maintained by employers that have at least 20 employees on more than 50 percent of its typical business days in the previous calendar year. Both full- and part-time employees are counted to determine whether a plan is subject to COBRA. Each part-time employee counts as a fraction of a full-time employee, with the fraction equal to the number of hours that the part-time employee worked divided by the hours an employee must work to be considered full time. COBRA also applies to plans sponsored by state and local governments.

The law does not apply, however, to plans sponsored by the Federal Government or by churches and certain church-related organizations."
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
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