Can You Have New Insurance & Still Use Cobra?

Figuring out your options with health insurance can be confusing. With each new job opportunity or change, you have to re-evaluate your coverage. COBRA is a law requiring health benefit options for employees or beneficiaries after termination of employment. The benefits are paid for by the beneficiary and generally last 18 months. If you have new health insurance, your COBRA coverage generally ends. However, there are exceptions.

Difficulty: Moderately Challenging

Instructions

1. Understand that COBRA usually ends when your new health insurance coverage begins. You generally do not need to pay for COBRA after your new insurance starts, unless you have a preexisting condition. Also, make sure there is not a gap between coverage dates.

2. Ask your new health insurance company if it has a preexisting condition clause that applies to you. Many company health plans do not want to cover a major illness or condition you had before entering into their plans. If so, you generally can keep COBRA coverage if your new plan does not cover illnesses or conditions you already have.

3. Keep COBRA until you are certain your new employee plan will cover you, if you have ever been denied private health insurance coverage.

4. Continue paying for COBRA if cost is no issue and you want to continue to get the full comprehensive benefits offered under your COBRA plan.

5. Know how to file for COBRA continuation coverage if you need longer than 18 months or have a preexisting condition. There are details from the Department of Labor (see Resources below).

Tips & Warnings

• Beware if you do not elect COBRA coverage and have a break in coverage; you have less rights with a preexisting condition.

Resources

• COBRA FAQs from the U.S. Department of Labor
• Pamphlet from the DOL about when and why you may need to keep COBRA benefits