How are you paying for health insurance if you are one of the millions recently laid off?
wooper asked:
I know COBRA is available for many, but it is very expensive to keep up and runs only for a limited period. Questions like this have been asked before and those against governement supported health care just accused those who didn’t have health insurance as lazy losers. But with the economy crashing, the scenario has changed. If you aren’t employed anymore and have no income and little savings, what are you doing for health insurance?
TAT…I left my job and my COBRA payment was $1,200 a month for me and my family. When you are unemployed, that is a LOT of money and not “reasonable” as you describe it. Many don’t have enough money for rent and food, much less that kind of money.
Heath Web Blog
I know COBRA is available for many, but it is very expensive to keep up and runs only for a limited period. Questions like this have been asked before and those against governement supported health care just accused those who didn’t have health insurance as lazy losers. But with the economy crashing, the scenario has changed. If you aren’t employed anymore and have no income and little savings, what are you doing for health insurance?
TAT…I left my job and my COBRA payment was $1,200 a month for me and my family. When you are unemployed, that is a LOT of money and not “reasonable” as you describe it. Many don’t have enough money for rent and food, much less that kind of money.
Heath Web Blog
There are many things that are expensive. COBRA is reasonable. If insurance is important to someone they need to make that sacrifice. I guess we should be paying for their food and homes. Those are expensive and a necessity. Where does it stop?
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Bad things happen. That is life. Hard times come and tough decisions have to be made. That still does not make it anyone else’s reponsibility to care for you. And you need to talk to COBRA again. That figure, according to the guy I just spoke to , seems inflated.
I honestly believe that if a person *wants* health care, as they do other insurances, they will find a way. I know so many people who could easily afford health insurance had they not run up credit card debt, bought more car and house than they needed, etc…….It is all your level of contentment. There are still people who live by their means.
Otherwise, they will be perfectly happy to sit back and let the government provide it, which is not the role of the government.
** …..and we already provide health care for the very poor….
My guess is they’re not.
I see there are some naive posters here. I found myself laid off last year. I was 35. My COBRA payment? $345/month
A private policy was $135/month. For my 45 year old coworker, a private policy $485/month not including her son and that was roughly half what the COBRA payment would have been.
How can any sane person call that reasonable for someone who just lost their job?
Fortunately for me, I still have a job, but I have friends and family who have lost theirs. They were not able to keep up with their Cobra payments, and some have lost their homes, not because they made a bad loan, but because both husband and wife lost their jobs. Some have dropped health care in order to pay their mortgage. I think this is one of the reasons Obama added 54 billion to strenghten welfare, as he I believe is looking to the future. I think we will have at least another 2 years of job loss. If that money does not get into the welfare system, we are doomed.
I think most of the people that use the term lazy losers, are losers themselves. Or still living off daddy.
A very attractive and significantly lower cost alternative to Cobra continuation coverage is an individual health insurance policy which can be purchased for one person or for an entire family on the open market. The reason that these types of policies are inherently cheaper is because you can design the plan to meet your personal budget.
The problem with Cobra continuation coverage is that you are continuing a health insurance plan that was designed and purchased by someone else. Specifically your former employer. The decisions made during that purchase were much different than the decision that a family must make when purchasing their own health insurance coverage without the help of their former employer (who used to pay a significant portion of the monthly premium as an employee benefit). Cobra continuation plans typically have very low calendar year deductibles (e.g. $250 or $500). The lower the deductible, the higher the premium. When you design your own individual health insurance policy you can raise the calendar year deductible and lower your premium drastically whilst retaining all of the “first dollar” benefits that are normally included with Cobra continuation coverage.
“First dollar” benefits are defined as “benefits you receive WITHOUT paying your calendar year deductible (e.g. outpatient doctor office visits, outpatient generic and brand name prescription drugs, outpatient preventative care or wellness coverage and accidental injuries). All of these “first dollar” benefits are covered WITHOUT paying your calendar year deductible first. Typically only a small “co pay” ($25 or $30) is required at the time of service. This being the case, it is much wiser to choose a high deductible plan (e.g. $2,500 per calendar year) with $5,000,000 major medical coverage per family member instead of paying twice the premium (or more) for Cobra continuation coverage. Doing so will protect each family member just as well as Cobra continuation coverage whilst also maintaining all of the aforementioned “first dollar” benefits found on most Cobra continuation plans.
A common misconception is that individual health insurance plans do not cover “pre-existing conditions”. Whilst this can be the case with some carriers (e.g. Blue Cross Blue Shield.) There are many quality insurance carriers who actually cover controlled conditions such as Hypertension (High Blood Pressure) & Hyperlipidimia (High Cholesterol) from day one, including the medication one uses to control such conditions. This being the case, if you and your family are reasonably healthy people there is no reason to throw your money away by paying an inflated Cobra continuation premium. After all, isn’t it better to pay a bit more IF you actually end up in the hospital, then pay twice the premium (or more) each and every month for fear that one day you will? For quality health insurance options for the insurable please visit: http://www.sbisvcs.com/Small%20Business%20Health%20Insurance.htm
What if you have tried to obtain individual health insurance coverage and have been declined for a pre existing condition more serious that the two aforementioned conditions? Are there still options to Cobra continuation coverage? Indeed there are. The options are threefold. They are as follows:
1.) State Insurance Risk Pool Coverage provided under HIPAA that provides seamless continuation of coverage after your Cobra continuation coverage expires, or if you have lost employer sponsored group coverage due to policy cancellation by your former employer. Pre existing conditions such as Diabetes & Cancer that would render one uninsurable on the individual major medical market would be covered from day one providing you have been insured for a minimum of 18 months with no lapse in coverage of more than 63 days. Not all states have insurance risk pools but many do. To find out which ones do visit: http://www.naschip.org/states_pools.htm
2.) Small Group Health Insurance which contains the all important “Guaranteed Insurability” clause. This option can be elected with a minimum of two people (often husband and wife) who work for the same corporation. Small Group coverage will also provide seamless continuation of coverage for those with pre-existing conditions such as Diabetes or Cancer providing the aforementioned 18 months of prior continuous coverage has been met. Must have corporate tax ID number and both “employees” must work 30 hours or more. These policies can be premium rated as high as 67% in states such as Illinois due to the severity of the medical history of one or more applicants. However, often times this rate increase is less than a Cobra continuation premium.
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3.) “Defined Benefit” Health Insurance policies. These policies (recently advertised on the Fox news channel) are issued on an individual basis to anyone regardless of medical history. Whilst these policies offer limited benefits. They do offer an unlimited surgical benefit and up to $1,000 a day for hospital coverage up to 100 days. These policies are also HIPPA qualified. Meaning that they will also cover pre existing conditions such as Diabetes or Cancer from day one providing you have the same aforementioned proof of prior coverage of 18 months or more with no lapse in coverage of more than 63 days. To learn more visit: http://www.sbisvcs.com/guarantee_issue.htm
A lot of people go to emergency rooms because legally, ER’s cant deny treatment despite ability to pay.
COBRA is not a reasonable alternative. If my husband were to lose his job right now (and his benefits obviously) The COBRA plan would cost us around $1200 a month to cover our family.
We couldn’t afford to pay that NOW with both of us working, let alone if one of us lost our job.
In what world is $1200 a month a reasonable option?
With a credit card with 0% APR until June. But my premium is just $230/mo.
Wow, $1,200 a month, you must have had really awesome coverage with your previous job. My COBRA was $600 for me, wife, and 3 kids and that was higher than most people I know who have used it. I know COBRA matches your insurance you had with your employer and the better coverage or higher cost insurance you had, the more it will be.
But like the other person said, emergency services can not refuse treatment so it’s not like you’re going to die just because you have no health insurance if you’re a somewhat healthy person.
$1,200 is crazy though and I would suggest shopping around for a higher deductible and lower coverage policy to save $ rather than pay that crazy high price.
As far as being laid off, I hope things work out for you. My suggestion for everyone is to make sure you’re keeping your family in mind as top priority and not depending on anyone else whether it be an employer or the government as your only chance of filling needs. Keep a backup source of income/tradeskill and work hard to keep your job secure and company profitable. Too many people get in the groove of a 9-5 paycheck not planning for the “what if”.