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Can an employer require you to show confirmation of medical coverage before you can drop your existing insurance?

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2011-09-12 14:56:58
2011-09-12 14:56:58

Yes,The way this was explained to me by my companies H.R. Dept. was the fear the company has of being sued. Say you get a nasty divorce, separation or some thing along them lines and out of spite your husband or wife drops the family plan, then you or your child get injured and goes to the hospital just to find out that you are no longer covered. Let's face it, if you can sue because you eat fast food and it made you fat or for spilling hot coffee in your lap this is not that far of a stretch.

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If your spouse is a cancer patient and on COBRA with your former employer until you get new group coverage with your new employer does the pre-existing condition rule apply to you? My former employer has United Healthcare Insurance, and my potential new employer has Blue Cross Blue Sheild Health Insurance.

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AS LONG AS YOU WEREN'T DIAGNOSED BEFORE YOU HAD INSURANCE. IT WOULDN'T BE CONSIDERED A PRE-EXISTING CONDITION IF YOU WERE UNAWARE OF IT UNTIL AFTER YOU RECIEVED THE GROUP INSURANCE.

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Any medical condition can be a pre-existing condition to an insurance company precluding coverage. However, it is possible to still get coverage and deny the pre-existing clause by providing a certificate of continuous coverage from another insurance company.

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This depends on whether or not your new employer will be providing you with coverage. If the new employer will provide you with group coverage, then you will have an exclusion for 1 full year from the effective date of the new coverage. During this first year, you will have limited coverage for the pre-existing condition. After 1 year, the pre-existing condition will be covered at 100%.If your new employer is not providing you with a group plan than you will need to obtain individual coverage. Individual Disability coverage is fully underwritten and will likely exclude any pre-existing conditions. If the condition is severe enough, you may even be declined coverage.

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Perhaps the most beneficial reason is that someone else is paying all or a portion of your health insurance costs for you. Even if your employer pays 50% of your health insurance cost that's 50% less that you don't have to pay directly out of your pocket with post-tax $. Employer coverage is definitely a lot more limited on the choices of benefits & plans as opposed to the myriad of choices available if you were purchasing it on your own. Another great benefit of employer coverage is that you don't have to go through 'medical underwriting' to qualify to enroll in the employer plan as you would have to for non-employer coverage in most states. In other words, you can't be denied enrollment into your employer health coverage based upon your existing health conditions or risk.


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