We are not COBRA. For specific contract details about your current company policy, contact your health plan administrator.
In Reply to: Company going bankrupt posted by Derek Semmler on February 20, 2003 at 13:59:17:
Derek:
60 days is the law for changes, however, if the company was insolvent, there would be no group health insurance to continue.
CHIP (Comprehensive Health Insurance Plan), administered by Blue Cross and Blue Shield of Illinois. Depending on your age, they might be cheaper than
the cobra conversion offered by CIGNA, because it's state run. One thing to keep in mind, Limited maternity coverage can be purchased in $500 increment amounts for a minimum term of one year.
You are obviously male, and if single, you probably don't need this option.
to be eligible for CHIP, have you been covered by prior "creditable coverage" for at least 18 months (most recent being group) ("creditable coverage" includes group health plan, Medicare, Medicaid, CHIP, Individual health insurance policy, federal or other government employees' plan, or church plan);
Previous creditable coverage was without a break of more than 62 days between periods of prior coverage;
If you are healthy, the COBRA conversion plan or even HIPAA CHIP may not be the cheapest way to go. Get
your own health insurance with a lower premium.
Sincerely,
: I have some questions regarding the bankruptcy of my previous employer.
: On your web site it mentions, "Your group health plan must notify you within 60 days of any reduction in benefits." Does that include the termination of the plan in the case of bankruptcy? It seems that going from a plan to no plan is a reduction in benefits. If that is true, will the Cobra have to continue for 60 days if they decide to terminate the policy?
: Also, I spoke with a CIGNA representative the other day and she informed me that if the company goes bankrupt, I would have the option to continue Cobra coverage through CIGNA, I am assuming this would be a conversion. Does anyone know if this is accurate and if so, what are the premiums like?
: Lastly, due to a pre-existing condition, I understand my only options are to enroll in the HIPAA CHIP program in my state or enroll in another group plan. If I am eligible for a group plan upon termination of Cobra, can I elect to enroll in CHIP rather than the group plan? Believe it or not, CHIP appears to be cheaper than the group plan.
: Any information would be greatly appreciated!