Company Benefits

32 Comments

1. AnonymousAugust 16,2023 at 8:26PM UTC

   It can be anywhere from day one of employment or 90 days after start and anywhere in between. You determine whether or not that works for you. How long does your current coverage carry you? Keep in mind with COBRA, it is expensive, but what I advise people is to not elect it unless you find yourself in a situation where you need it and then you can elect it and it will be retroactive back to date lost coverage. Alternatively, if you are offered the job, I have heard of people negotiating COBRA costs to bridge that gap.

2. AnonymousAugust 16,2023 at 9:58PM UTC

   I recently started a job where this was the case. It is very common. I just went a month without insurance.

3. BeaBoss979975August 17,2023 at 6:32PM UTC

   That was a huge risk!

4. Joan Williams, Senior Talent Acquisition SpecialistAugust 16,2023 at 10:33PM UTC

   This is fairly standard, certainly not a red flag for me. Only you can decide what's best for your family. Anonymous below mentioned some options = see if you can get a sign on bonus that would cover the cost of COBRA = it should only be for one month as I believe (not 100% sure) that you would be covered on your current policy until the end of the month you resign.

   You could just pay COBRA out of pocket or do as explained below where you can elect for coverage retroactively.

   But this isn't an out of the ordinary policy.

5. AnonymousAugust 17,2023 at 11:47AM UTC

   That is going to be company-specific. Many will go to the end of the month; however, as a (stupid) cost saving measure some companies will have in their plan docs to term coverage as soon as employment ends.

6. Joan Williams, Senior Talent Acquisition SpecialistAugust 17,2023 at 5:01PM UTC

   Yes, that can happen. If a company terms as soon as employment ends and the employee contributes to the payment of the premium, they're paying for a month so I would ask for the prorated amount of the premium be refunded.

7. AnonymousAugust 17,2023 at 5:14PM UTC

   We actually worked through this whole thing figuring out whether we could term coverage at end of employment. What I understand at the end of those conversations at this particular employer is that the benefits are actually paid ahead. Example: where I currently work, benefits are effective from day one but employees aren't typically electing their benefits until a few weeks in (elections must be made within 30 days of hire). We aren't doing payroll deductions until at minimum second payroll.

8. Valerie RiegerAugust 17,2023 at 6:21PM UTC

   In organizations where I have been where benefits have been effective the first day of employment and the employee takes a few days/weeks to make their selections, benefits are made effective (retroactively) with the carriers the day of employment. The organizations did not retroactively collect premium payments from the employees.

   In those organizations, because benefits were available immediately, they were terminated immediately. The carrier refunds the employer for any premiums paid for but not used.

9. AnonymousAugust 16,2023 at 10:56PM UTC

   Very common and happens all the time. Pay the 1 month of Cobra or go without for 30 days which I would recommend because anything can happen in between.

10. AnonymousAugust 17,2023 at 12:26PM UTC

    Would very much NOT recommend going without, that is how Insurnace companies can then exclude any 'pre-existing' conditions. Pay the Cobra for the month.

11. AnonymousAugust 17,2023 at 12:43PM UTC

    But you can elect the COBRA coverage retroactively. You have at least 60 days to elect the coverage.

12. Valerie RiegerAugust 17,2023 at 1:24PM UTC

    I was just about to say this. I recommend that people keep the COBRA paperwork in a handy place and if something happens, they can elect it retroactively. I make sure they understand that they would be responsible for paying the entire premium. In the OP's case it would only be for one month, but in plans with a 90 day waiting period, that could be pricey.

13. Joan Williams, Senior Talent Acquisition SpecialistAugust 17,2023 at 5:02PM UTC

    If you're in the US, because of the ACA, I'm not sure how much of a thing pre=existing conditions still are.

14. AnonymousAugust 17,2023 at 1:02PM UTC

    This is fairly common. Just left a job that offered benefits on Day 1 to go to a company where I had to wait 60 days. You can try to negotiate. I did and was told there was no flexibility on this. Ended up paying COBRA for two months.

    If you are carrying coverage for your family, I wouldn’t risk something happening (unless you have huge savings) and pay COBRA for a month.

15. Valerie RiegerAugust 17,2023 at 1:23PM UTC

    I've been in organizations where the waiting period was anywhere from 30 days to 90 days. There isn't room for negotiation as it violates some laws around discrimination towards highly situated employees.

    You CAN ask for a one time bonus that would cover the cost of your COBRA.

16. Lisa KahlerAugust 17,2023 at 2:30PM UTC

    My last 3 jobs gave me insurance on day 1.

17. Paula Manczuk-HannayAugust 17,2023 at 2:48PM UTC

    That was my experience with my current and last position. It’s probably in the contract with the insurer and not negotiable. However, as someone else commented, you could negotiate a signing bonus to cover COBRA for the time you’re not insured by them.

18. AnonymousAugust 17,2023 at 2:52PM UTC

    Yes I’ve seen this in many companies

19. AnonymousAugust 17,2023 at 5:54PM UTC

    30 days is nice, I see a norm of 90 days to make sure you're more than likely going to stick around. You can utilize Cobra plans in the interim.

20. AnonymousAugust 17,2023 at 6:33PM UTC

    There is no norm. When a company uses 3rd party insurance (all of most do vs self insuring) the contract states when people get put on. They usually don't do it day one because the accounting nightmare would be too much and generally when you leave a company unless you start at theirs on the first day of the month you have coverage elsewhere. It is an insurance business thing vs a companies thing. The date of start is usually 1st day of the month unless the 1st is on a sunday then it is the 2nd. Or the following month if you start after the 1st. I would ask your leaving company about cobra be sure to complete ALL the forms internally and with the insurance company. You must elect cobra it is NOT automatic to continue coverage. Then keep what you have for the first 30 and then move over to the new company. The new company will not be able to put you on their insurance because their process is set for ALL and there are never exceptions except for executive hires usually. You could ask the company you are joining if they would consider picking up the cost as a sign on bonus but frankly I would not advise this. It just is what it is.

21. AnonymousAugust 17,2023 at 8:52PM UTC

    Cobra Information is automatically sent to a person upon termination of your employment. It is law. If you are at a large company this may be done offsite and not available ahead of your leaving.

    You need to check how your insurance at current employer runs. Sometimes it is the end of the month, sometimes the day you leave, etc. If you have vacation time, you may be able to keep coverage until that is over. Ask those questions so you have all your information lined up. Please note that COBRA is what you pay PLUS what the company pays (so will not be cheap) for the time you are covered. For example, you may pay $200 per pay period but the company may pay $300 per pay period - so you would be paying the 500 per pay period for Cobra. I think that is the biggest shock to some people.

22. AnonymousAugust 17,2023 at 8:35PM UTC

    It depends on what company. My daughter started as job that benefits were granted after 90 days. 90 days is normal in many segments where people leave so quickly as it is expensive and time consuming to add someone on and take them off a few weeks later. She was recruited away and was hired back and was able to negotiate her benefits starting right away as part of her coming back.

    There are many companies who have a 30 day wait, some 90. There is no one set of rules for benefits and when they start.

23. AnonymousAugust 18,2023 at 1:01AM UTC

    New hire benefits eligibility rules differ by company, the one you are describing is not uncommon. Consider taking COBRA with your previous employer and cancel it once your new coverage takes effect. You could also consider the COBRA cost you'd incur and factor into your salary or maybe a one-time payment as part of sign-on, when it is appropriate to discuss and negotiate pay.

24. AnonymousAugust 18,2023 at 2:02AM UTC

    Only one month? Lucky!

    So, if you start today, 8/17, insurance beginning 10/1. You'd have to COBRA for the other job (insurance PROBABLY through 8/31 but ask!!)

    Now: you have 18m to COBRA retroactively. So if nothing happens until 10/1, no harm!! If something happens 9/30 or between old ending and new beginning , you can pay right away and insurance is retroactively stated and Dr/hospital can refile the claim.

    Insurance: love/hate relationship!!!

25. AnonymousAugust 18,2023 at 11:14PM UTC

    That's interesting. I once was laid off and when I went back 3 months later and said I wanted to take on the cobra payments, I was told the timeline had passed for me to do that. I live in Illinois. Does it vary by state?

26. Joan Williams, Senior Talent Acquisition SpecialistAugust 19,2023 at 6:59PM UTC

    I believe the cutoff on that is 60 days.

27. AnonymousAugust 18,2023 at 12:46PM UTC

    It depends on how much you want/need the job. For what it’s worth, I’ve found that companies with this policy don’t prioritize their employees, so I’d personally reject the position. I know many of the below posts don’t see it as a red flag - I do. Plenty of companies offer insurance day 1, so choosing not to offer it from day 1 means that they are choosing to cut their costs and to expose their new employees to a high level of risk (cobra is ridiculously expensive and out of most people’s reach). My previous job claimed it was the insurance company’s policy to delay insurance - I now have a job where my insurance started day 1 - guess what? Same insurance company… Unless you really need the job, I’d go with a different offer.

28. AnonymousAugust 18,2023 at 12:50PM UTC

    We are a company that offers coverage from day one; however, I wouldn't see it as a red flag for companies that don't. From what I understand (I'm not directly involved in benefits), it is more administratively burdensome to manage it this way.

29. Denise BrowningAugust 18,2023 at 1:21PM UTC

    I just started a new job and insurance wasn't available until 90 days after start.

30. AnonymousAugust 19,2023 at 12:08PM UTC

    Pretty typical in my experience.

31. Lisa McCartneyAugust 19,2023 at 2:00PM UTC

    It's common around here. My employer is the oddball with benefits starting day 1.

32. AnonymousAugust 21,2023 at 3:10PM UTC

    Those were the terms for me. I had COBRA from my previous job, so it wasn't a worry.