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: Thu Apr 23, 2009 10:01 am Post Subject:
Kelvin, I have no idea if your 9% figure is correct, but I'm willing to assume that it is. Why would only 9% go on COBRA?
Let's look at what the other 91% do:
1) Get added to their spouses plan
2) Purchase individual coverage
3) Get coverage through their new job
4) Go without coverage
Group health insurance is expensive. The issue isn't that COBRA is expensive. The issue is that group health insurance is expensive and when one goes on COBRA, they are paying group rates.
Therefore, the only people who historically have gone on COBRA are people who can't get coverage elsewhere and can afford the COBRA rates.
COBRA is full of unhealthy people.
Let me give you an example. You work for ABC Company. ABC company has a group health insurance plan in place. The insurance for you is $250/month. ABC company pays $150/month, so you only pay $100. You quit your job. COBRA allows you to continue with the insurance. Since you no longer work at ABC, they won't pick up any of the cost, so you will now pay $250/month.
Would you continue on COBRA? Yes, but only if you could afford the premium and couldn't find less expensive coverage elsewhere. Under what conditions, would this happen? Most likely it means that you have a health issue.
That is why that I say that COBRA is a bargain. People only go on COBRA if it is the best value for them. COBRA is full of people with health problems.
Posted: Thu Apr 23, 2009 11:38 am Post Subject:
I’m not very well off with the ways the health insurance industry works. So, if I take your comment to the face value then enrolling for COBRA justifies only if you have serious health issues and can’t find coverage elsewhere. Healthy people should stay away from it or find cheaper alternative.
But my experience states that people get enrolled with the group plans since they can’t afford or find proper health plans in the market. And its also true with the healthy people which means that it isn’t easy to secure coverage in the private market even when you have no health issues.
Posted: Thu Apr 23, 2009 12:16 pm Post Subject:
People get involved with group plans because the employer usually picks up a portion of the cost which makes this their best option for coverage since it minimizes their out of pocket premium.
That is correct that healthy people should stay away from Cobra.
Posted: Thu Apr 23, 2009 03:27 pm Post Subject:
Hi, if you have chances to go jobless it's always better to carry a public program. Though your access to primary care physicians would be restricted, it's still better to carry 'something' than 'nothing'. Please keep an eye on your delayed rationing due to less provider reimbursement.
Fatman
Posted: Fri Apr 24, 2009 11:40 am Post Subject:
Fatman,
I think you have other cheaper options than Cobra. These options would be more if you don't possess any severe health problem. You could go for a PPO plan rather than Cobra. This would certainly cost a lot lesser.
Roddick
Posted: Sat Apr 25, 2009 02:46 pm Post Subject:
Hi, if you don't have any significant gaps in terms of coverage you can't be denied coverage by a provider purely under grounds of your health conditions. States that have a guaranteed issue regulation would fetch premiums worth twice or thrice as compared to other states. Steven
Posted: Thu Apr 30, 2009 07:13 pm Post Subject:
United Healthcare recently came out with a continuity plan that basically allows you to turn your health insurance on and off depending on whether you have group coverage. It is a much more affordable option than COBRA.
Posted: Thu Apr 23, 2009 10:01 am Post Subject:
Kelvin, I have no idea if your 9% figure is correct, but I'm willing to assume that it is. Why would only 9% go on COBRA?
Let's look at what the other 91% do:
1) Get added to their spouses plan
2) Purchase individual coverage
3) Get coverage through their new job
4) Go without coverage
Group health insurance is expensive. The issue isn't that COBRA is expensive. The issue is that group health insurance is expensive and when one goes on COBRA, they are paying group rates.
Therefore, the only people who historically have gone on COBRA are people who can't get coverage elsewhere and can afford the COBRA rates.
COBRA is full of unhealthy people.
Let me give you an example. You work for ABC Company. ABC company has a group health insurance plan in place. The insurance for you is $250/month. ABC company pays $150/month, so you only pay $100. You quit your job. COBRA allows you to continue with the insurance. Since you no longer work at ABC, they won't pick up any of the cost, so you will now pay $250/month.
Would you continue on COBRA? Yes, but only if you could afford the premium and couldn't find less expensive coverage elsewhere. Under what conditions, would this happen? Most likely it means that you have a health issue.
That is why that I say that COBRA is a bargain. People only go on COBRA if it is the best value for them. COBRA is full of people with health problems.
Posted: Thu Apr 23, 2009 11:38 am Post Subject:
I’m not very well off with the ways the health insurance industry works. So, if I take your comment to the face value then enrolling for COBRA justifies only if you have serious health issues and can’t find coverage elsewhere. Healthy people should stay away from it or find cheaper alternative.
But my experience states that people get enrolled with the group plans since they can’t afford or find proper health plans in the market. And its also true with the healthy people which means that it isn’t easy to secure coverage in the private market even when you have no health issues.
Posted: Thu Apr 23, 2009 12:16 pm Post Subject:
People get involved with group plans because the employer usually picks up a portion of the cost which makes this their best option for coverage since it minimizes their out of pocket premium.
That is correct that healthy people should stay away from Cobra.
Posted: Thu Apr 23, 2009 03:27 pm Post Subject:
Hi, if you have chances to go jobless it's always better to carry a public program. Though your access to primary care physicians would be restricted, it's still better to carry 'something' than 'nothing'. Please keep an eye on your delayed rationing due to less provider reimbursement.
Fatman
Posted: Fri Apr 24, 2009 11:40 am Post Subject:
Fatman,
I think you have other cheaper options than Cobra. These options would be more if you don't possess any severe health problem. You could go for a PPO plan rather than Cobra. This would certainly cost a lot lesser.
Roddick
Posted: Sat Apr 25, 2009 02:46 pm Post Subject:
Hi, if you don't have any significant gaps in terms of coverage you can't be denied coverage by a provider purely under grounds of your health conditions. States that have a guaranteed issue regulation would fetch premiums worth twice or thrice as compared to other states. Steven
Posted: Thu Apr 30, 2009 07:13 pm Post Subject:
United Healthcare recently came out with a continuity plan that basically allows you to turn your health insurance on and off depending on whether you have group coverage. It is a much more affordable option than COBRA.
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