Dealing With COBRA Rules, Regulations and Exceptions

Part 4, Chapter 12: Specialized Situations: Extending Coverage through COBRA, the Portability Act, and Conversion Options Page 5

Continued from Previous Page

However, if your employer offers a traditional health insurance plan, you may be able to switch to that plan during an open enrollment period before you leave your job. Once you've made that switch, you may be able to apply for an extension of the traditional plan under COBRA when you move. If it's not possible to switch to a traditional policy, COBRA rules may not be helpful. COBRA regulations do not require a company to create a new insurance plan in order to meet the needs of an employee who is moving to a new area.

There are a number of other technical rules and exceptions that exist in relation to COBRA. You can obtain additional information by talking with a representative at the benefits office of your current or former employer, or by calling or writing to a benefits advisor at the Pension and Welfare Benefits Administration of the United States Department of Labor. If your health insurance is provided by a state or municipal government agency, you can write instead to the United States Public Health Service, which has jurisdiction over the implementation of COBRA regulations in such situations (See Appendix B).

One common problem of which you should be aware is that some insurance companies may issue a new identification number when an individual continues health insurance under COBRA. However, that identification number may not be cross-referenced to the individual's previous identification number. Thus, if you continue your health insurance under COBRA, you may find that claims filed under your previous identification number will be rejected on the grounds that your insurance coverage has been terminated. If that occurs, the solution is generally to call your insurer, find out your new identification number, and re-file the claims under that number.

Continued on Next Page