Posts Tagged ‘COBRA’

Where to Turn for Health Insurance when COBRA is not an Option

Wednesday, June 9th, 2010

If you lose your job, do you know where to turn for health insurance?

Larger companies must offer their employees COBRA benefits if they are terminated, yet many employees don’t even consider this an option because of the expense that comes along with this type of insurance.

In short, consider purchasing COBRA to extend your healthcare benefits if you can afford it. COBRA is still the best plan of action for most individuals who are terminated from their position and lose their healthcare.

However, if COBRA simply isn’t an option, you may still have other options available to you:

  • Purchase an individual insurance plan - If you are in good health, you may be able to find a quality health insurance plan for less than COBRA; however, expect your coverage to be more limited than COBRA coverage. If you have pre-existing conditions, you may have more difficulty getting an individual health insurance plan. However, don’t assume that you are ineligible for an individual insurance plan; instead, check out your options. The health care reform law, in fact, prohibits health insurance companies from rejecting you based upon pre-existing conditions.

  • Consider group coverage - You may be eligible for group coverage if you go into business for yourself. All states require health insurance companies to provide group coverage for business with two or more employees, so it isn’t out of the question to receive group coverage, even if you have only one other employee. In addition, insurance companies cannot deny you because you or your employees have pre-existing conditions.

  • Check state insurance programs for your kids - If you are unable to keep your health insurance coverage, you can at least make sure your kids are covered. Every state has some kind of children’s health insurance program. Information about all of these programs can be found at www.insurekidsnow.gov. These types of programs are available to all children, although prices may vary depending on your income level.

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How to Shop for Health Insurance when you have a Pre-Existing Health Condition

Thursday, January 21st, 2010

Many Americans deal with a number of diseases and maladies at any give time throughout their lives. These diseases, often termed “pre-existing” health conditions through health insurance companies, can often mean not being able to receive health insurance if you lose your current health insurance.

However, having a pre-existing health condition does not always mean not being able to be insured if you lose your existing health insurance coverage. You do have options; it’s just a matter of knowing your rights and your options:

  • If you lose your health insurance with one company, but then find another job with group health insurance coverage, you cannot be denied coverage for your pre-existing health condition. However, if group health insurance coverage isn’t available through your employer, you may consider being a group by yourself for health insurance purposes. This “group of one” policy is only available in about 12 states throughout the country, so check to see if this type of policy is available through your state.

  • Check to see if your state offers a “risk high pool” health insurance - a type of health insurance for individuals with pre-existing medical conditions. This type of health insurance is available in about 30 states, so look into whether this option is available in your state.

  • If you lose your job, consider continuing your health insurance through COBRA. COBRA allows you to continue with your health insurance coverage, but you must pay for it yourself. Although this is an expensive option, many individuals with pre-existing health conditions find it invaluable if they lose their health insurance coverage due to a lay off.

  • Don’t wait too long to apply for new health insurance, as most states require health insurance companies to accept you if you lose your employer health insurance and apply for new insurance within 60 days of being laid off.

  • Inquire about professional organization health insurance. If your new employer does not offer group health insurance, you may be able to get group health insurance through a professional organization that relates to your profession. Again, this will vary from state to state and profession to profession, so it is up to you to do the research necessary to find professional organization group health insurance.

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COBRA Insurance: Common Questions Answered

Wednesday, December 16th, 2009

If you lost your job you may have been offered COBRA insurance. Although many people have heard of this type of insurance, not many people really understand what it is and what it does.

What is COBRA?

COBRA, which stands for the Consolidation Omnibus Budget Reconciliation Act of 1985, is essentially a law that allows individuals who lose their health insurance from their employer to continue receiving benefits for up to 18 months.

Who is eligible to receive COBRA?

Generally, individuals are entitled to receive COBRA if they are laid off, if their work hours are reduced, if they quit, or if they are terminated. COBRA insurance must remain available to the employee and his/her spouse and dependents.

However, to keep your group health insurance coverage under COBRA you must pay a monthly insurance premium that doesn’t include the discount your employer offered you. In other words, expect to pay a hefty monthly premium if you accept COBRA health insurance coverage.

When is COBRA the right choice?

COBRA health insurance may be incredibly helpful, however, to individuals with pre-existing medical conditions that may have difficulty getting adequate coverage under another health insurer. Most individuals with pre-existing medical conditions may find it extremely difficult to find a health insurer that will cover them; and if they do, they will likely pay sky-high premiums.

An individual may also accept COBRA health insurance coverage if their new employer does not offer health insurance or does not offer adequate health insurance.

Are there any other options besides COBRA?

If you don’t have any pre-existing medical conditions you may want to instead search for private health insurance coverage, as it is often much less than COBRA insurance coverage. There are many companies that offer private health insurance, including the major insurers like Blue Cross/Blue Shield.

A great way to search for private health insurance is to simply look on the Web. Often times, health insurance companies have easy-to-navigate websites that provide consumers with quotes on health insurance. In fact, searching for private health insurance using the Web is usually the best way to find quality health insurance at a reasonable cost.

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What to do When you Lose your Health Insurance

Wednesday, November 25th, 2009

Unfortunately, the reality of losing health insurance is an all too common situation in today’s economy. If your position has been eliminated or if the company is going under, your job isn’t the only thing you may face losing.

Employer-based health insurance benefits are a very important aspect of many individuals’ employments, and living without them, even for a short period of time, can be devastating for most families. From expensive prescription medications to emergency care and doctors’ visits, employer-based health insurance is not a luxury, it is a necessity.

However, if you find yourself on the verge of losing your employer-based health insurance, there are a number of options you may have:

  • COBRA - Larger companies of more than 20 employees, under a federal law, are required to offer you an extension on your health insurance of 18 months while you look for other employment. Called COBRA (Consolidated Omnibus Budget Recognition Act), this health insurance extension must be enrolled in no longer than 60 days after you lose your health insurance. Although you will enjoy the same benefits that you did under your employer health insurance plan, the costs will be significantly higher.

  • You spouse’s health insurance - For many individuals, it just makes sense to sign up for their spouse’s health insurance when they lose their coverage. Luckily, most large companies will bypass the annual enrollment time period to allow you to sign up for your spouse’s health insurance if you lose your coverage.

  • Private health insurance - For many individuals, purchasing private health insurance is often less expensive than purchasing COBRA, so you may want to consider contacting a reputable insurer and ask them for their private health insurance costs.

  • Free or lost-cost programs - If money is an issue, you may want to consider some of the free or lost-cost health insurance options. You can check with your state’s Department of Health regarding free health insurance for your children; you can also check with your state’s insurance department or consumer services department to see if your state offers lost-cost health insurance.

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Divorced and Uninsured? Take Immediate Steps to Protect Your Health and Well Being

Friday, October 9th, 2009

If you are currently going through a divorce or planning a separation, don’t neglect your own health and well being by ignoring responsible health insurance measures.  Specifically, if you and your spouse do not have children, then you may very likely wind up without health insurance coverage if you do not pro-actively find out how the divorce will impact your insurance benefits.

Uninsured Spouses of Divorce

If your soon-to-be ex-spouse was the primary health insurance carrier during your marriage, you have an array of options to protect yourself from the potential devastation associated with a loss of insurance.  Comparatively, as millions of Americans are currently un-insured, some individuals going through a divorce struggle to cope when neither the husband nor wife held health insurance coverage.  Whether or not your spouse was insured or uninsured is typically irrelevant; as individuals separating from their husband or wife can choose common pathways to protect their well being with temporary or reduced-cost health insurance plans.

The Steps to Health Insurance Protection Amidst a Divorce

  • Step 1 - If you are employed, ask your human resources representative if health insurance policies are offered through your employer.  If so, find out how and when you can receive coverage.

  • Step 2 - If you are not employed, or if your employer does not offer health care benefits, then find out if you can continue health insurance coverage through COBRA.  COBRA is considered to be a relatively affordable health insurance option for qualified individuals.  Generally, COBRA is a potential option for individuals whose ex-spouse formerly acted as the primary carrier of health insurance for their husband / wife.
  • Step 3 - If you are not eligible for COBRA insurance, investigate affordable emergency health insurance plans.  Emergency insurance plans, also commonly referred to as short-term health insurance policies, protect individuals from experiencing a lapse in coverage.  As a result, if an accident tor serious health emergency arises after one’s previous health coverage has been ceased, the emergency insurance will protect an individual from serious harm and loss.  Specifically, if you are employed and your employer can provide you with coverage, then emergency plans can protect you during the time your ex-spouse’s coverage ends until your new  (employer provided) coverage begins.

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Who Should Partake in COBRA?

Tuesday, June 2nd, 2009

Group health insurance is a major benefit to employees.  Most small to large companies now offer some form of group health insurance to their employees as an additional hiring and retention incentive.  What with the cost of health care skyrocketing, having a company pay for all or at least a portion of the health care premiums is a great benefit to have.

Benefits Are Not Always a Guarantee

There was a time, however, when workers would quit or become laid off and the group health insurance ceased as of the same month.  Workers found that they were without health insurance for a period of time until they found a new job that offered the benefit or could get an individual or family health plan.

To address these concerns, in 1985, the Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA, put into law a way for families and individuals to continue their group health care coverage after their employment ends.  For up to 18 months a former employee can continue the same health insurance they had up until the time of their termination.  This can be a tremendous help for families who may have suffered layoffs as it helps individuals continue coverage when getting an individual policy would be impossible due to pre-existing treatment for a condition.

However, though COBRA made health care continuation a possibility, the financial burden fell upon the former employee.  An employee who did not pay any premium for his own insurance, or only had to pay a small percentage each month, needed to pay the entire premium.  That sometimes translated into costs of over $1,000 a month for a family health care plan.

Changes That May Benefit Millions

Thankfully, in 2009, the American Recovery and Reinvestment Act signed into law by President Obama has now made it possible for former workers to enroll, or even re-enroll in COBRA, and pay only 35% of the original full premium.

Health care benefits can be a costly expense for those without group coverage.  If you are facing a layoff or job loss consider enrolling in COBRA immediately after your employment.  The continuation of health care will serve you well when it comes time to enroll in a new plan.

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