Cobra benefits

[Guest lgilmore]

My mother's company recently went out of business. She carried Blue Cross and Blue Sheild Insurance. She is 63 1/2 years old and is now going to work as an Independant Contractor. She has several preexisting conditions. She has chosen to elect Cobra to cover her until Medicare age. Blue Cross and Blue Sheild advised her that she had to convert to an individual policy because the group policy no longer existed due to the Company's Closure. Best I can tell, she has to convert to an individual policy under Cobra because there is no longer a group policy under her company. The premium is outrageous. Has anyone had any experience with Cobra after a Company closes vs. an employee just leaving. Also, is it correct that the Insurance company can force you to convert to an Individual policy because her Company closed?

[jeanine]

COBRA is continuation coverage. If the company closed and there is no longer any plan of coverage, there is nothing to continue. If she would have terminated employment and the company kept operating and offering an employee health plan, she would have been continuing coverage under a group health plan and paying the entire premium herself. Yes, it most likely would have been cheaper than any individual policy she is being offered. Unfortunately, her options seem to be extremely limited. You may want to call or access your state insurance department to see if there other options available to her.

[Guest NancyBR]

I agree. And, because she was covered under a group policy, she probably has creditable coverage, which would reduce or eliminate any waiting periods or exclusion of coverage due to her pre-existing conditions. She really has no other choice but to go on to an individual policy - at least she will have coverage, but the carriers can charge a bundle. Also, she needs to apply for this coverage within 63 days of losing her group plan. Good luck!