I have run into several situations where Cobra coverage is ending and a Creditable Coverage Certificate is needed to apply for individual coverage(or in some cases State Assistance). The existing carrier won't issue a Creditable Coverage letter until after the termination date. The new carrier (or State) needs the Creditable Coverage letter to process the application and verify that no other coverage is available. How can someone apply for new coverage without running the risk of having a lapse in coverage?

There may be a gap in coverage, but as long as the gap is not over 62 days you should be fine. In some cases of state health insurance, they expect you to be uninsured for 6 months! To prevent people from avoiding paying for health insurance and waiting until they need expensive procedures, then going to the state.

Creditable Coverage

Are you healthy? If not, consider converting to HIPAA, but the premiums are exteme. With HIPAA, you can't be turned down for health insurance and your pre-existing condition must be covered if you have not received a diagnosis for a condition in the previous 6 months.

The 63 day limit is so that you choose shortly within a loss of prior health insurance so you don't wait out an expensive pre-existing condition exclusion. For example, if you were given 6 months, you would wait just over 6 months between doctor visits for your medical problem.