It is so absurd that a "lapse in coverage" should have all these grave consequences. You'd think we were playing some stupid video game rather than dealing with real people with real health issues. What kind of health care system do we have in this country where if you let an extra day go by all of a sudden your brain tumor is uninsurable? Somehow we have let insurance companies create this absurd and inhuman health care system. Sometimes I am amazed at the the things we put up with.
I believe this is just one of the reasons HIPAA (health insurance portability and accountability act) was put into place. As long as you remain covered, without a single day lapse in coverage, your insurance and existing conditions are usually covered (under the terms of your new policy benefits) without being termed preexisting when you move to another group coverage policy. This is actually an improvement from previous years prior to HIPAA where an employer could find out you had a medical condition, penalize you by firing you or denying you insurance and you became instantly uninsurable. Because of HIPPA...the portability part makes you able to change jobs and insurance without being penalized. Otherwise, you could be stuck working at the fish hatchery or cell phone store all of your life for fear of losing your insurance or being denied because you previously had been diagnosed with a brain tumor.
While extremely expensive, I admit I paid for COBRA insurance to cover a two day gap from a previous employer's insurance plan until the start date of my next employer's plan. Peace of mind was worth the $800 (8 years ago) because an accident or illness would have cost more.
Unfortunately a lapse in coverage is just that. No coverage. If your house burns down or you are in an auto accident and your insurance has lapsed, you are stuck. It always pays to know your rights and the terms of coverage because insurance companies may try to tell you otherwise. Getting things in writing never hurts.
Private insurers have more of an opportunity to exclude you or charge you higher rates because they are private, not group policies. You are specifically seeking them out to insure you and they tend to be more choosy as to who they will insure and under what terms.
Also know that each human resources department chooses the policy and benefits for the company. Just because two companies next door to each other offer Blue Cross and Blue Shield and charge you the same out of pocket per pay period, the actual policy may look very different. My policy may cover something yours does not, or co-pays or deductables may vary, depending on the agreement your employer signed with the insurance company. Just like ANs, no two are alike.
