Alternative to COBRA

by Guest » Fri Apr 17, 2009 01:21 pm
Guest

I'm really scared of getting laid-off. It would then be real tough task for me to pay for COBRA. Any suggestions?

Total Comments: 17

Posted: Fri Apr 17, 2009 02:05 pm Post Subject:

The World is going through a very difficult time.It is very tough and costly affair to pay full premium after job loss.I have heard that some employer may voluntarily help to cover the cost of COBRA insurance and include entire coverage amount in exit package.
The stimulus package just passed for laid-off people to receive subsidy of 65% of Health Insurance Premium for up to nine months.Although it is very good decision taken so far and make insurance premium little bit affordable for unemployed.But its a question of debate that will it feasible? What shall we do after nine months or year after that?Getting a new job is very crucial to meet expenses or else insurance premium may wipe out all savings.

Posted: Sat Apr 18, 2009 10:35 pm Post Subject: A cheap short term policy could work

A short term health policy will offer some coverage, it's more for major costs and not for someone with existing medical conditions. Also if you develop a serious problem while under a short term health policy you might not be able to find coverage elsewhere when it expires. They are alot cheaper than cobra, I've seen some as low as $20 a month. But again they are for catastrophic care. You can usually get them to run for up to a year, hopefully things will be getting back on track by then.

Posted: Mon Apr 20, 2009 05:45 pm Post Subject:

You likely won't find a better deal than the Govt subsidy paying 65% of your cost. If that's still too expensive for you, find a local in state independent broker that can shop all of the carriers for you.

Posted: Tue Apr 21, 2009 09:23 am Post Subject:

I have seen people avoid being on COBRA since the cost of it doesn't justify its benefits. IMO steps should have been taken earlier to protect people against the extraordinary rates of COBRA coverage. It wasn't administered and implemented properly and therefore has lost its effectiveness overtime.

My question to you Mip, do you think that COBRA is an imperfect system that actually has kept many people away from health coverage?

Thanks,
Rupert

Posted: Tue Apr 21, 2009 12:44 pm Post Subject:

Hi Barbwire,

See..a lay-off doesn't necessitate a loss in your health coverage. On the

other hand, a lay-off could give you an option to switch to another plan.

You might even consider plans with your former employer. In that case,

you'd just need to call up your former HR. Again, that's just one out of

many options!

Roddick

Posted: Wed Apr 22, 2009 12:13 am Post Subject:

My question to you Mip, do you think that COBRA is an imperfect system that actually has kept many people away from health coverage?



Well Cobra certainly isn't perfect and before the new subsidy I rarely advised my clients to take it unless they were uninsurable and unable to buy their own indiv plan. I personally like and recommend indiv plans over group. Unfortunately, underwriting is not kind to many and cobra may be their only option. Now with the govt paying 65% of the cost, it's typically the most affordable option, especially when people have lost their income.

Posted: Wed Apr 22, 2009 06:58 am Post Subject:

Hey Mip,

I personally like and recommend indiv plans over group.



I'm sure that you have reasons for that.

Now with the govt paying 65% of the cost, it's typically the most affordable option, especially when people have lost their income.



Surely, sooner or later the government is going get itself freed from this burden. I wonder what would become of the people then. I sincerely feel that if no steps are taken towards improving the system now, many are again going to skip this wonderful provision in the future. What do you say?

Posted: Wed Apr 22, 2009 01:48 pm Post Subject:

Hi Barb..

Have you considered any limited benefit plan?

With these mini-meds you'd be entitled to receive maximum benefits. They'd cover you for hospitalization and generic drugs.

Fatman

Posted: Wed Apr 22, 2009 07:46 pm Post Subject:

I have seen people avoid being on COBRA since the cost of it doesn't justify its benefits. IMO steps should have been taken earlier to protect people against the extraordinary rates of COBRA coverage. It wasn't administered and implemented properly and therefore has lost its effectiveness overtime.

My question to you Mip, do you think that COBRA is an imperfect system that actually has kept many people away from health coverage?

Thanks,
Rupert



Can you please explain further why you think that the cost of COBRA isn't justified by its benefits?

COBRA is actually a bargain. I'm not saying that it's inexpensive. COBRA is nothing more than the participant being able to continue their health insurance AT THE SAME COST that was being paid before they left their employment. The reality is that COBRA should be more expensive. The reason for this is that healthy individuals buy individual coverage instead of going on COBRA. Therefore, COBRA is mostly unhealthy people.

If COBRA isn't justified by its benefits don't we have to say that all health insurance isn't justified by its benefits?

Posted: Thu Apr 23, 2009 07:17 am Post Subject:

Can you please explain further why you think that the cost of COBRA isn't justified by its benefits?



Why then only 9% of the enrollees actually take up the program at the time of need?

I think that it is the cost of the program that makes it unaffordable to many. Further, COBRA doesn't guarantee that you would find proper health coverage after staying on COBRA for eighteen months, rather it would eat-up all your saving by that time.

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