Once you’ve made the decision to accept COBRA (federal or state) coverage from an employer plan, your benefits plan will not function until your COBRA coverage is confirmed. (Read about making good choices after leaving or losing a job.)
Here’s what to do:
First Steps – Be Prompt!
- Know your benefit plan’s last day of coverage. Ask your employer or call your insurance carrier. Schedule any necessary medical care prior to that date and refill any prescriptions.
- Complete your COBRA enrollment form and send in the premium payment as soon as possible.
- Save a copy of your enrollment form.
Until your application and premium are processed, your benefits ID card(s) will not work at providers’ offices, hospitals or pharmacies. You will not receive any plan discount.
While You’re Waiting – Be Prepared!
- Be prepared to pay out-of-pocket for medical care and prescriptions.
- Save your receipts and file claims as soon as your coverage is complete.
- Hold off on unnecessary medical care.
- If you must access medical care, bring a copy of your COBRA enrollment form. You can try to negotiate with the provider to accept the insurer’s allowable charges. You would then need to file a claim for reimbursement with the insurance carrier.
When Coverage is Approved – Be On Time!
- Complete claims and send forms and receipts to the insurer for reimbursement.
- Continue to pay your premiums on time to ensure continued coverage. If you are canceled from COBRA due to non-payment you are no longer guaranteed coverage, nor do you have HIPAA conversion rights.
Special Subsidy Information for ARRA Assistance Eligible Individuals
If you are eligible for the federal COBRA subsidy under the American Recovery and Reinvestment Act (ARRA) of 2009, you must complete the special enrollment form. You will then be responsible for 35% of the premium. The specific amount should be stated in your COBRA enrollment materials.
Read about the ARRA and COBRA.
Information posted here copyright Shargel & Co. Insurance Services. Please feel free to reproduce with proper credit to Susan Shargel, and include a link to http://insuranceinsights.shargel.com
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