Applying for COBRA coverage question

This is probably one of those “just do it” type things but I’m curious regardless.

I recently changed jobs and am applying for COBRA coverage while I become eligible for coverage at my new job. My old office gave me a sheaf of paper along with my COBRA letter (stating my cost) to fill out if I want coverage. The papers are the same application I filled out originally to get the insurance. Given that I’m just continuing the coverage I already have, should I really have to fill these out again?

This isn’t one of those “just do it” type questions. You can actually save yourself a large chunk of money by not filling it out and not paying for COBRA at all unless you need it. Believe it or not, COBRA insurance is retroactive and will be backdated if you get sick and need medical care. You only need to pay it in that case. There are a few other things to take into account but you most likely don’t need to pay or fill anything out to be covered under COBRA at least in the beginning and that may be enough for you. Be careful if you do this so that you don’t exceed any deadlines on either side but that is really the way COBRA works. It isn’t a loophole and you are fully entitled to just not pay unless you need care.

See this recent thread for more info.

For a couple reasons, we’ve decided that we do want to continue our coverage through COBRA at least short term. Just assume that we’ll “need it”. I’m just wondering why I’d need to essentially re-apply for coverage that is, in a sense, already existing.

The answer to that question is basically “it just is that way”. Even if you stay with the same insurance company with your new employer, you are moving through three distinct policies even if your coverage doesn’t change at all: your old employer’s policy, COBRA, and your new employer’s policy. The reason is that it is group insurance and not just tied to you. COBRA is a new group with new rules. You can make some modifications to your policy as well if you choose when you move between them so they are treated as new and unique. I used to work in the industry setting this stuff up behind the scenes for large groups of people. It is screwy but that is just the way it works.

Thanks. I finally got hold of my old HR person and she said essentially the same thing: my old employer cancels my old policy and re-signs up up under the new COBRA policy, despite them being the same thing.

Ah, bureaucracy! Thanks for the help – it wasn’t even so much about the actual act of filling out paperwork but getting concerned that I would confuse the system by applying again.

Shortly after I was laid off I found myself in the emergency room being admitted for an emergency gallbladder removal. While I had applied immediately for COBRA, the insurance company said I wasn’t covered because they had not yet received payment. Eventually it got sorted out, but it was not fun. Make sure they get your money and, if possible, pay them by direct deposit.