Lv 7
Casey asked in Business & FinanceInsurance · 2 months ago

how does health insurance work when switching jobs?

I am about to leave my current job for a new job, but I wont be benefit able at the new job until the trial (60 days) is over. I get my health insurance from my current employer so what happens when I leave? Will my coverage stop right away? Will I have to get a tempory plan somehow? Will I even be able to enroll in my new employer's insurance in the middle of the year?

7 Answers

  • 1 month ago

    A Hunch has a good answer up until the "January 1, 2021." He has no idea when your company's open enrollment is.  Most of my groups are right now for October 1. We have a couple for January 1, but that's the worst time of year to do it for the same reason going to WalMart the day after Thanksgiving is the worst time to go. Renew when nobody else is.

    1) Could lose it day you leave or end of the month. We have no idea as it depends on the plan, though end of month is more common.

    2) Don't assume "COBRA is expensive." If your current employer isn't could be the same price it is now. Also, not uncommon for smaller employers.

    3) A Hunch's idea of floating COBRA is what we recommend.  Write the check, put it in the envelope and put it on your fridge. Tell your friends/family that in addition to clearing your browser history, also mail the check should you become incapacitated. Otherwise, take the free coverage.

    4) You're eligible when you're eligible.  Could be day 1, could be first of the month following that, or after 30 days, 60 days, but no more than 90 days.  Most common starts are first of the month following 30 or 60 days. After you come on as a "new hire," your next opportunity to change is open enrollment which could be the first of ANY MONTH of the year.

  • Amy
    Lv 7
    1 month ago

    Typically coverage is on a monthly basis. Which means your old coverage lasts until the end of the month, and your new insurance won't start until the first of the month after you qualify.

    You will have the option to continue your old coverage. However, you would have to pay the full price, which your employer has been paying most of. 

    You can get a Marketplace plan, or take the risk of going without insurance for the interval.

    Losing your insurance because you changed jobs does allow you to enroll in a new plan mid-year. So does becoming eligible at your new job. There's a 60 day window, so you wouldn't be able to enroll after your job trial in the case that you don't get the job - except your timing puts that during open enrollment.

  • Willie
    Lv 7
    1 month ago

    You lose it once you leave your present job.

  • 1 month ago

    If you do nothing, then your old insurance will stop.  If you wish to keep your old insurance until you can enroll in your new employer's insurance, then you can use your COBRA rights to pay money to keep your old insurance.  Keep in mind that you have to pay the full cost of the insurance -- both what you were paying and what your employer was paying.

    Do not get "temporary" insurance.  It covers almost nothing.  Even if you need insurance only temporarily, get regular insurance, like you would get if you needed it for many years, and then cancel when you no longer need it.

    You can enroll in a NEW employer's insurance in the middle of the year.  New employees can enroll in an employer's insurance when they first become eligible.  They do not have to wait for open enrollment.  However, if they you not enroll when they first get the opportunity to enroll, then you do have to wait for the next open enrollment period.

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  • n2mama
    Lv 7
    2 months ago

    Often the old insurance carries until the end of the month rather than ending the day you stop being employed there, but it depends on your specific plan. You would likely qualify for COBRA coverage from your old employer, but that is often super expensive to the point of not being affordable. Last time I changed jobs the COBRA coverage was almost $2000/month.  Enrolling in the new employers insurance shouldn’t be a problem once you’ve passed the 60 days. Nobody will force you to have insurance, if you don’t have coverage for a couple of months the only penalty for you would be if you had a medical emergency or situation during that period of time, you would be completely out of pocket. Depending on how healthy you are, if you have underlying health conditions, etc, you may have to decide if the risk of being uninsured is worth it for a couple of months or not.

  • 2 months ago

    Yes, you will be able to purchase insurance mid-year through an employer based plan.

    When you leave employment, your coverage ends on the last day of employment or last day of the month depending on company policy.  If the company has over 20 employees you will be eligible for COBRA (which costs, see below).  If the company has less than 20 employees, you may be eligible for mini-COBRA based on state law.

    With COBRA, you have 60 days to select the program.  If you don't expect to have any major health issues during this time, it's good to not pay for coverage.  (This will save you two months of bills).  But make sure people outside your household  know that you are doing this. In case something happens to you and you can't pay the bill yourself, they can pay it on your behalf.

    If there is not a overlap between with the 60 days to select COBRA and the time the new employer plan is available, you should purchase a private plan (either through the marketplace or an insurance broker) to cover the days that you don't have coverage.

    At this point, if the private plan is less expensive than the group plan and you don't have expected medical bills, it might make sense to keep private coverage and go on your group plan at open enrollment for Jan 1, 2021.

  • 2 months ago

    Some companies extend your insurance, or you have to purchase a COBRA plan. Changing jobs is a major life event and yes you will be able to enroll in the new companies plan once eligible, you won't have to wait until the open enrollment.

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