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Health insurance coverage, and how I saved $767 today

May 23rd, 2013 at 12:16 pm

Ugh. Itís incredible to me that I had to spend 6 hours of my day today on health insurance coverage. As you know, Iím in transition, job-wise. However, I was told of a way that will likely save me $767 in premium coverage.

Hereís the deal. Iíve been on Cobra, like, forever. Iím paying $562 a month but itís that time of year for re-enrollment or whatever, and monthly premiums are rising to $767!!! However, my eligibility for Cobra ends June 30 regardless, and Iíve known all along Iíd have to find something else. I THOUGHT Iíve have to go on the plan of last resort, the state plan for low-income people, which goes for $589/month, and then stay on that through the end of the year. After that, I hoped to pick up a better plan vis a vis Obamacare.

However, with the new job, I can get health insurance through the recruiter agency, but it wouldnít be effective until July 1, and the paperwork has to be in to them by June 10. The new plan will represent something of a cost savings to me at $495 a month. Itís through a union, though, so I have to join the union and then pay a one-time $95 fee for union dues.
Since Iím not effective on the new plan until July 1, I still need coverage for the month of June. When talking to the customer service rep for my current Cobra plan and after explaining my situation (that I have only 1 more month to stay on Cobra), he reminded me that thereís a 30-day grace period for the premium payments.

That is, while I normally would send in my payment for June coverage in late May (like right about now), he said if I felt I could avoid seeing a doctor or incurring other healthcare expenses in June, that I could possibly save myself the $767 for the last month of coverage that I need with Cobra.

With the 30-day grace period, I can delay payment for the month of June to as late as June 31 and still be covered, retroactively, if I needed it. As long as my premium payment is postmarked in June, Iím covered.
I went ahead and ordered another 30-day supply of my MS meds today so running out wonít be an issue. I had a doc apt I just rescheduled in late June, but I can reschedule it for July when Iím on the new plan. So I should be able to get through June with no medical issues.

I'm so glad I talked to this guy because I would have never thought of that on my own.

3 Responses to “Health insurance coverage, and how I saved $767 today”

  1. creditcardfree Says:

    I've heard about the grace period before, but don't usually think about it. Glad it will help you out!

  2. CB in the City Says:

    When I took this job, I had a coverage gap because my insurance didn't take effect for a month. Sounds like you've checked already, but be sure it's July 1. I was lucky -- nothing bad happened!

  3. M E 2 Says:



    FYI, June only has 30 days.

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