Health Benefits Advisor

No Current Group Health Plan through Former Employer

Your former employer, employee organization (such as a union), or both are not required to offer you and your family the opportunity to elect COBRA continuation coverage if your employer, employee organization (such as a union), or both no longer sponsor a group health plan. Under special rules, if your former employer was acquired by another business that provides group health benefits, the acquiring business may have successor liability and a duty to offer you COBRA continuation coverage. See IRS final regulations for more information.

You should know, however, that there are other options available that may assist you and your family in obtaining health coverage. For example, you and your family members may have the right to enroll in your new employer's plan or you may have special enrollment rights in a plan sponsored by your spouse's employer. You may also be eligible for Medicaid, CHIP (Children's Health Insurance Program) or other health coverage.

In choosing among the options available to you, you should review the SPD (summary plan description) for all available group health plans to determine which plan best meets your needs. You should also review and compare the information on the other coverages for which you are eligible. In making your decision, you may want to consider such things as:

1. Any waiting period (or affiliation period) imposed under the plans;
2. Types of benefits offered (Is dependent coverage available? Do the benefits cover your family's medical needs?);
3. Cost of coverage (premiums, co-payments and deductibles for prescription drugs and doctor visits);
4. Limitations on coverage; and
5. Any exclusions from coverage (treatments, procedures, conditions or prescription drugs).

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