Retroactively Cancel COBRA Converage?

[Spiffster]

I lost my job in February of this year and have been carrying COBRA coverage for my family since the date of my termination. I have found new employment and have a group policy beginning on June 1st. We have had no insurance claims for the entire month of May (this month), and I was told by a friend that I could cancel coverage retroactively for this month and get our premium for the month refunded. (we have already paid COBRA up through the end of May) Is this accurate?

[GrimJack]

Your new policy begins tomorrow and you want to ask for a refund for this month? You were insured for the month of May but since COBRA is a government mandated program I would be very careful what you ask for. It is possible that COBRA can be canceled RETROACTIVELY! Please stop for a moment and consider that statement - COBRA insurance can be canceled retroactively. I would not worry about a month's premium that keeps you and your family insured continuously from your previous job, up to your new insurance kicking in when some sort of bureaucratic mis-step could hit you with back medical bills. That sort of thing can be reversed but have you read your COBRA documents including all the fine print. The answer to your question is probably in there somewhere but if cancel the insurance for the month of May then you have not had 'continuous' insurance and that may lead to other issues.

Is the premium worth it?

[Spiffster]

Your new policy begins tomorrow and you want to ask for a refund for this month? You were insured for the month of May but since COBRA is a government mandated program I would be very careful what you ask for. It is possible that COBRA can be canceled RETROACTIVELY! Please stop for a moment and consider that statement - COBRA insurance can be canceled retroactively. I would not worry about a month's premium that keeps you and your family insured continuously from your previous job, up to your new insurance kicking in when some sort of bureaucratic mis-step could hit you with back medical bills. That sort of thing can be reversed but have you read your COBRA documents including all the fine print. The answer to your question is probably in there somewhere but if cancel the insurance for the month of May then you have not had 'continuous' insurance and that may lead to other issues.

Is the premium worth it?

Thanks for your response. I have confirmed that it is possible to retroactively cancel COBRA coverage up to 60 days out (at least in OUR case we can). From the research that I have done this will not cause an issue with continuous coverage per HIPAA guidelines unless we were uninsured for longer than 63 days. Besides, no pre-existing conditions here anyway *knocks on wood*... we simply dispense cash to insurance companies and their shareholders year after year.

[GrimJack]

Thanks for your response. I have confirmed that it is possible to retroactively cancel COBRA coverage up to 60 days out (at least in OUR case we can). From the research that I have done this will not cause an issue with continuous coverage per HIPAA guidelines unless we were uninsured for longer than 63 days. Besides, no pre-existing conditions here anyway *knocks on wood*... we simply dispense cash to insurance companies and their shareholders year after year.

There is a downside - what if they retroactively cancel COBRA for those months that covered your medical bills? If your COBRA coverage is retoractively canceled, then the medical bills that were paid become 'unpaid', just saying 'retroactive' can be a 2-edged sword.