Temporary Health Coverage for Weekend

[rocknrolls2]

Although I am a seasoned benefits practitioner, there is a personal question based on a personal situation that is about to be raised in the next couple of weeks.

I have a daughter who is no longer a tax dependent of mine and she has health insurance coverage through her employer. She is going to be starting a job with a new employer in a couple of weeks, and it occurred to me that she might have a gap in coverage, even if it is over a weekend. If her last day with employer 1 is a Friday (which coincides with the last day she has medical coverage with employer 1) and her first day with employer 2 is the following Monday, in which case she will become covered under employer 2's medical plan as of either that Monday or not until the first day of the following month, what happens if she gets injured during the period when she is uncovered?

A couple of possible responses might be COBRA, but she would likely not get the election until after she starts working for employer 2 and possibly after she has medical coverage with employer 2. Another possibility might be the exchange, but what if it is not an open enrollment period and what if she is not able to limit her medical coverage to the period when she needs it?

I would greatly appreciate any thoughts you might have.

[GMK]

She will be eligible for COBRA from employer 1 to continue that coverage after that employment ends.

She has 60 days to sign up for this COBRA coverage which will apply retroactively to the day she loses the employer-provided coverage, so she waits to see if she needs it.

If it turns out she needs the COBRA continuation coverage to cover something that happens before employer 2's coverage starts, then she signs up for COBRA and pays a month's premium. While it's expensive coverage for the gap period, she doesn't have to sign up and pay for it unless she needs it. Stay safe.

[shERPA]

Yes, what GMK said, assuming Employer 1's plan not exempt from COBRA. There is a small employer exception, I think the threshold is fewer than 20 employees.

[rocknrolls2]

Thanks, GMK and SHerpa. While expensive, at least she gets the benefit of 20/20 hindsight.

[StaceyHelton]

In addition, may employers cover through the end of the month, regardless of when you terminate employment. Your daughter should definitely find out if that is the case with her current employer (they should tell her during her exit interview, but it doesn't hurt to find out sooner).

[rocknrolls2]

Thanks, Stacey. It turns out that employer 1 is continuing her coverage until the day she starts with employer 2, which is the day her health coverage with her new employer starts. Consequently, there is no gap in coverage for her to worry about.