Unemployment rose from 7.5 to 8.1 percent in February 2009-its highest
rate in more than 25 years according to the Bureau of Labor Statistics. A
study by the Kaiser Commission on Medicaid and the Uninsured, April 2008,
indicates that each one percent increase in the national unemployment rate
leads to more than 1 million additional people losing their health
insurance.
Through COBRA, employees who lose their jobs are able to continue
employer-sponsored coverage for up to 18 months. However, they may pay 110
percent of the cost of the traditional health insurance premium for COBRA
continuation coverage.
Relief seemed to appear in February 2009 when President Obama signed the
$787 billion economic stimulus package, which included a subsidy covering 65
percent of COBRA premiums for the first nine months of unemployment. This
assistance is available to eligible workers who have lost or will lose their
jobs as a result of the current economic recession between September 1, 2008
and December 31, 2009.
Still, COBRA remains out of reach for many collecting unemployment checks
and struggling to pay for bare necessities. Pre-subsidy annual COBRA
premiums average $4,400 for individuals and $11,000 for families, according
to Kaiser Family Foundation statistics.
"As Anthem Blue Cross representatives , we understand that these are
tough economic times. We understand that people are worried about keeping
their job, and if they should lose their job, the struggle to make ends meet
with COBRA premiums seems overwhelming," said Dennis Alexander, benefits
advocate at Health Coverage Insurance Services, Inc, a member of the IHC
Group. "We want people to know they have options, and that STM is a viable
alternative."
Typically, individual plan premiums are significantly less expensive than
COBRA. In addition to lower monthly payments, Individual plans offer greater
ease of qualification and enrollment. With individual health insurance,
there is no lengthy underwriting process and the applicant can complete the
entire process online within a matter of minutes. If approved after
answering a handful of health-related questions, they will receive their
approval confirmation, ID card and certificate. Coverage may begin as early
as the next day.
Individual health insurance coverage periods may last as few as 30 days
or as long as you want. Traditional individual major medical insurance
coverage once approved would cover pre-existing diseases and physical
conditions that might not be covered by some other health plans.
People who are in good health and anticipate the need of coverage are
typically ideal candidates for Individual Health Insurance. Those with
serious health conditions are unlikely to qualify. Anyone trying to choose
between Individual Health Insurance and COBRA continuation coverage under
their current health plan can visit alternative to COBRA health insurance
plans to determine their Individual Health Insurance eligibility.
"If there is any question in people`s minds about what they should do, it
is always best to talk to an insurance professional," Dennis advises.
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Jesse Seagle
1104 College Ave Santa Rosa, CA 95404
