CHAMPVA

Question:

I qualify for CHAMPVA the effective date will be my effective date of my 100% P&T rating. Once I get my card I want to cancel my employer  provided insurance to save some money. The problem is they are saying it has to be canceled within 30 days of a life event. But I won't have coverage or a card for a few months. CHAMPVA will backdate coverage but I could not afford if something happened between now and then. Do you have any suggestions how to get around the 30 day IRS rule? Thank you.

 

Jim's Reply:

I'm not sure which IRS rule you're speaking of? To be clear, I'm not expert on IRS rules and regs, far from it. But I don't know of any such rule. Over the years many veterans I know (including my wife) have stopped paying for civilian insurance and switched to CHAMPVA with no issues. I recommend that the beneficiary visit with the primary care physician one wants to be associated with and talk with their insurance and billing folks and then go for it.

CHAMPVA is great insurance if you're patient and be sure to get preapprovals and so on.

Many will keep their civilian insurance for weeks or even months as they transition...a personal choice depending on individual circumstances and finances.

I'd suggest that you review whatever policy it is you're looking at and then make a decision whether to invest more money into being assured of any emergency care or just diving right in. Good luck.