I apologize for what may be an ignorant question, but can someone explain how COBRA coverage works? My severance ends on 8/23 and so my benefits end at the end of August. I understand I'll be sent COBRA enrollment documents sometime within two weeks of my benefits ending. But doesn't that mean I'll have a lapse in my coverage? What if I break a leg or something? I tried to call Benefits Connect to ask and they were entirely useless as they said I wasn't yet eligible and so couldn't help me, argh. Appreciate any insight anyone can offer!
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From what I read in my package, it sounded like they would mail you the notice 2 weeks before your severance coverage ends, then you have 60 days to make a decision, but they would cover you in arrears if you had something come up.
I retired on March 1 last year and chose to go with COBRA. Given that I retired on the first of the month I had Wells Fargo insurance until March 31 so I had time to sign up for COBRA to be effective April 1. Here are some things to think about:
- COBRA is expensive, but it allows you to continue your Wells Fargo insurance, which may or may not be better than an alternative. For me it was.
- COBRA covers you for 18 months. You didn’t mention whether you are retiring so I don’t know if this applies but for me that 18 months is ending on September 30 of this year. I don’t qualify for Medicare until January 2025. I am getting coverage from the marketplace for October through December 2024. Because my income has gone way down with retirement, I am eligible for the marketplace subsidy insurance rates which run from $250-$550 for me only.
- You’ll want to consider the timing as mentioned above if you decide to go with COBRA. In hindsight, I wish I had not re-enrolled with Wells Fargo COBRA last November. If I had switched to a marketplace plan instead I would’ve had it for a full year. I had a large deductible January through September of this year and the deductible will start over when I go to the marketplace insurance for October through December.
- If you decide to go with COBRA, use the COBRA website. I found that because I retired I was discouraged from using COBRA rather than the retiree health plan. I was given bad information at times. When it came time to re-enroll in Nov of last year, I called cobra about the enrollment period, I was told it was “sometime in January”. In actuality it was limited to 2 weeks in Nov. I only discovered this because I checked the website frequently.
It may be too late for you to get to it, but I found the Wells Fargo retirement guide to be extremely helpful. They include websites and phone numbers as well as information about how cobra works. I also remember that it said not take that long to enroll in cobra. I believe I did it through the website. I had been told by a cobra representative that it would take a month to enroll and I would have a lapse in coverage, but that was not the case.
Best of luck
For me I had option of COBRA or insurance thru WF retirement plan, since I had been there 28 years and was over a certain age. BOTH of these options were very expensive but MUCH cheaper than the "Affordable" Marketplace insurance options. With the marketplace insurance you have to include all income to your household. Even my mother in laws social security even though her money had nothing to do with paying bills or for my healthcare.
I have two more years before Medicare kicks in, so I chose Christian Heathcare Ministries, very affordable.
To answer your question, you get time to decide on COBRA, 60 days. If you need insurance during that time COBRA will cover, but you have to pay for those 60 days.
check your states health insurance market place if they have one. These were created in support of the affordable care act.
you basically will pay the rate wells Fargo pays but without wells Fargo contributing like they do now. May not be your cheapest option so research and get price quotes.
Thank you! That's exactly what I needed to know. Much appreciated!
https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-consumer.pdf. look at Q8. you got 60 days to freeload before pulling the trigger to keep continuing coverage