Insurance Agent Forum

[al3]

If someone is on COBRA (actually Cal-COBRA), when it runs out are they guaranteed to be accepted by another carrier?

A prospect told me that because of HIPAA he was told by a Kaiser agent on the phone that he can get a policy with Kaiser when his COBRA runs out next month with no underwriting. He has a bad medical history (age 60, ex-cancer, current diabetes, etc.)

I was going to put him in a group via his small biz, but if Kaiser says they will take him perhaps I can get him an individual issue with someone better?

[edit]

I just saw this:

HIPAA allows an individual losing access to group coverage to enter the individual (not group) health insurance market.

To qualify an individual must:
Have at least 18 months of previous group coverage;
No longer be eligible for COBRA; and
Be ineligible for any other health coverage, including Medicaid or Medicare.

The law allows an individual 63 days from the date the previous coverage was terminated to obtain an individual policy without medical underwriting. These individual plans may be purchased through an insurance broker.
==========

Does this mean a COBRA person gets guaranteed issue (for a price, of course) after it runs out?


Thanks,
Al

[somarco]

COBRA is a federal mandate but each state has their own COBRA compliant legislation. You need to check with the CA DOI to find out how these things are handled in your state.