Ummmm… I was just laid off and now I have no health insurance! (COBRA)

Sound familiar? Chances are that now more than ever you may have that thought or a possibility of such an event running through your mind. Last month in the United States there were an estimated 240,000 people that woke up and found themselves unemployed, now with the impending failure of the auto industry that number could severely sky rocket. Not only would that failure include the auto industry but the parts industry, shipping, administrative jobs, the businesses that surround the auto industry communities. The fall out will surely be vast and felt by many. A huge majority of you that may be affected rely on your employer for insurance for both you and your family. If you think times are bad without a job how about times without a job and without insurance?? There are probably a few options that you have but realizing those options is the tricky part.

Often times your ex-employer will cover you with a particular sort of insurance option called COBRA (Consolidated Omnibus Budget Reconciliation Act). This is your option to carry over your insurance in the interim between one employer and the next. Obviously when not working for anyone you won’t be able to benefit from the same discount that you did when you were employed. COBRA is certainly a benefit but it will most likely be more expensive than what you are used to due to your employer not supplementing part of the bill and they may even charge you something of a processing/administrative fee. It is always good policy for you to check out your options during this break in employment and see what the costs are.

 

Reasons to stay with Cobra

•Pre-existing conditions that are already covered with current insurance plan
• Above the age of sixty approximately
• In poor heath
• Overweight 

 

Reasons to take the COBRA option and look for alternative options

• Younger
• Generally pretty healthy
• No preexisting conditions
• Cobra may be much more expensive especially if employer charges around 110% for administrative costs
• Want/need to disassociate with previous employer

 

These of course are just general guidelines and you are ALWAYS advised to check out every option you have. Some plans will vary and of course you want to find the one that is most appropriate for you.     

Something that is good to know, and most people don’t, is that if you have times where you are uninsured it will look like you are more of a risk to insurance companies and either your premiums will go up on your next plan or you’ll have a harder time finding an agency that will accept you. Although individual insurance may quite expensive in the short term it is still probably a good idea to have.
Knowing that in this fast paced culture we live in things can change before you get to work the next day, it is probably a good idea to look into what your options are before hand, whether you think you or your job are in peril or not.

I thought this was a pretty interesting topic and want to make sure that everyone is ready for what may or may not come.

If you find, after looking into this a little further as it pertains to you, that your COBRA rates maybe pretty expensive either shoot me an email or call our number here and we would be happy to look into saving you some money? I know this can sound like a daunting task, but I’d advise you to get on the ball before it’s too late! 

Check out some options here. These guys are really cool and will help you find the best option.

Health Care and Politics: Obama and McCain

So here I am sitting at a coffee shop trying to find inspiration for my first insurance blog.  What’s going to fire people up, what’s going to get people going, how can I help John and Jane Doe, and of course Joe the Plumber, or is it Steve? understand what is happening on the insurance landscape?  We all need insurance, we all need to know about insurance, but OH MY!! it is so boring.  My first attempt at an article on McCain v. Obama went up in flames.  Everyone has an opinion, most of them differ, and it’s hard to know what they are actually proposing.  I literally was hoping that when I stood up to get my second double espresso mocha half skim, half soy, sin whip (you have to make it spendy or you can’t stay on the wi-fi connection all day) that someone would swipe my computer and I’d have a decent excuse for not completing this post… no dice.

Well, then I’m going to lay it out quick and dirty like.  I guess I need to retract my earlier statement… it’s easy to know what they are proposing, how are the going to deliver though. It is important to know what the candidates are saying, but even more so to know what they aren’t saying.  Let me give it a go.

This is what our two magnificent choices for the highest office in the world, some may think that’s debatable, are proposing.

McCain: John McCain believes we can and must provide access to health care for every American.   This is what he proposes.   McCain is going to give $2,500 tax credit for individuals and a $5,000 tax credit (basically cash) for families to purchase their own insurance.  Instead of allowing the average citizens the same insurance as our government has access too he is pushing competition with insurance companies through deregulation.  What this means is that people can choose what plans they want and where they can go to receive their care thus letting the free market dictate the system (cost to you).  There are a some states (NY, NJ, WA, MA, HI, ME, VT and RI) that don’t allow outside insurance brokers to sell to their citizens leading to less competition and lowering the range of the free market.  Through deregulation these barriers to entry will be broken down and allowing more ‘players in the game’ as they say and equaling the playing field in those states.

Obama:  The Obama plan provides affordable, accessible health care for all Americans, builds on the existing health care system, and uses existing providers, doctors and plans to implement the plan.  How are we going to do this, saving and spending. Through streamlining the health care system (reporting and documenting more efficiently) allowing more people access to insurance similar to plans offered to congress and lowering repeat visits, and promoting changes in lifestyle we can save more.  By asking small to medium sized businesses to contribute more to the health care system we can spend more.

Here are the arguments.  McCain’s plan will never pass in the shadow of $700 billion buy out so in essence it sounds like he’s just blowing hot air. Eventually the spending has to stop and if anyone thinks that when the government says that they’re going to give you a credit, its actually money coming out of your own pocket.  If it isn’t coming directly out of your pocket than its coming out of the pocket of your employer.  Either you’ll lose your job or get paid less.  Not time has the phrase “There is no such thing as a free lunch” rang more true than now.  I’m certainly not an apostate mathematician that started blogging but if you’re taking from the same people your giving to not much will be accomplished.

Obama isn’t coy about it.  He wants to tax smaller businesses, the back bone of our economy, more than ‘they’ already are in order to supply the very expensive plans.  If history holds true, and often times it does, taxing during a ‘recession’, whatever that means these days, is no way to add jobs to an ailing economy.  Also through the constant reporting/documenting, some say, the government will be very involved in this process.  Anytime you hear government and insurance together it screams of socialism.  I think P.J. O’Rourke summarized it best when he said “If you think health care is expensive now, just wait until its free.” Much truth behind that statement.

Let me get a show of hands please, does anyone want a candidate to step up to the plate and say “everyone, we need to tighten our belts and buck up.  I know you want an easy solution but there isn’t one and by living within our means and taking responsibility, that is the only way we can get out of this mess.”  It’s all lies.  They’re promising us that they’ll take our money and give it back to us.

Maybe this post isn’t so much as explanatory as it is exploratory.  I think I have a general grasp on the situation.  Anyone interested in leaving comments?