Health insurance post layoff: don’t get bit by the COBRA
Half of jobless Americans didn’t have healthcare coverage last year, according to Kaiser Family Foundation. And the organization says that a one percent jump in unemployment would increase the number of uninsured Americans by 1.1 million. Last month’s sweeping layoffs mean there must be a heck of a lot of newly uninsured people out there right now.
Not exactly surprising, given the coverage options for the unemployed. For many, deciding between an individual plan and an extension of their worker insurance program (COBRA) can be a daunting task of choosing the lesser evil.
Our recently laid-off friend Allison knows this all too well. Lucky for us, she shares her story:
COBRA: The Snake in the Grass
During my exit interview, the president of business affairs
benevolently explained to me that I was eligible for COBRA Health
Insurance benefits. As this is my first time being laid off, I didn’t
really know what he was talking about, but he said it in such a
pleasant, “it’s the least we could do” way, and the word “benefits”
was used, so I figured it had to be a good thing, like
some sort of exit program for the recently “let go”. After all, I’ve
given almost 3 years to this company, surely they wouldn’t just stop
caring if I broke both of my legs or my molars were achy, right? It’s
not like I was fired, after all. This confidence was reinforced when
I went to the COBRA website. “The Consolidated Omnibus Budget
Reconciliation Act (COBRA) gives workers and their families who lose
their health benefits the right to choose to continue group health
benefits provided by their group health plan for limited periods of
time under certain circumstances such as voluntary or involuntary job
loss, reduction in the hours worked, transition between jobs, death,
divorce, and other life events.” The right to choose, ooh I like the way
that sounds. Hi-five, COBRA, that’s right!
WRONG.
I received my COBRA packet in the mail, and in no uncertain terms was
informed that I could continue my benefits for the bargain basement
price of Three Hundred and ninety OMFG these people are out of their
minds per MONTH. What? I literally laughed in the letter’s face,
although that wasn’t even the funny part. The next envelope of
hilarity came in the mail 2 days later-to notify me that my premium
had gone UP about $50. Oh, now my cheeks hurt. Of course, COBRA being my
homie and all, tipped me off that although I may find what seemed like
better deals elsewhere, a physical exam could skyrocket that shit, so
I should really act now. Wrong again. Since I now have an
unemploymentality (and hella time on my hands) I searched around for a
better deal-if you don’t really go to the doctor that much or have a
host of prescriptions to take care of, there are plenty of Health
Insurance options out there for under $100. Contrast and compare at
ehealth, which does a great job of giving you your options. Most of the big
guys also have programs geared towards young adults, such as Tonik.
Health Insurance is still pretty messed up in this country, and there’s
nothing like not having it to make you realize that. Hopefully Obama
will get on it in ’09. Until then, I recommend staying away from
healthcare plans that resemble or remind you of animals that slither on their stomachs,
have forked tongues and are biblically responsible for the fall of
civilization. Just a tip.
