Page 115 - Group Insurance and Retirement Benefit IC 83 E- Book

their policies can often be "medically underwritten." That is, insurers can consider the

health of the applicants when deciding whether to insure someone. They could reject you
for coverage completely or exclude coverage of your existing condition -- which goes

against the very reason you need health insurance (some states, though, like Washington,
ban that practice, and federal law forbids all group health plans from medically

underwriting you).

However, the federal Health Insurance Portability and Accountability Act (HIPAA)

guarantees that people who have continuous health coverage -- and meet certain other
qualifications -- can't be denied insurance even if they have pre-existing conditions. So if

you forgo COBRA and thus create a gap in your coverage, you would lose your HIPAA

protection when you later decide to buy insurance.

Two other factors to review when considering COBRA: the extent of your health-plan
benefits and your network of doctors and other health-care providers. If your plan has

extensive benefits, you might want to stay on COBRA even if you're eligible for
coverage under your spouse's health-care plan. The IRS says you have that right. And

you might not want to risk losing a favorite doctor if you have to switch plans.

If you decide against COBRA, you still can consider buying individual insurance or even

a short-term policy to tide you over until you land a new job with health benefits.

Your coverage offered under COBRA must be identical to the coverage you had before.
"An employer can't allow employees to choose a less-expensive plan," notes Paul

Fronstin, a senior research associate with the Employee Benefits Research Institute, a

Washington-based nonprofit, nonpartisan organization that conducts research about
employee benefits. However, employers can -- but are not required to -- give you the

option of dropping such "noncore" benefits as dental and vision care. On the other hand,

if you were covered by, say, three different health plans at the same time (for
hospitalization, prescriptions, medical, etc.), you have the right to elect to continue

coverage in any or all of them.