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Insurance strategies for job changers

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• CUT EXPENSES/TAKE CONTROL
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• 5 Min. Ins. Course
• COBRA/HIPAA Explained

"A 5 MINUTE COURSE ON HEALTH INSURANCE STRATEGIES"

Read this course in: 5 minutes (at 250 words per minute.)

COURSE OVERVIEW:

• To cut COBRA costs, sometimes by hundreds of dollars per month, by looking at permanent insurance, short term medical insurance, state-provided coverage for kids and HSAs.


• Maintain the proper "HIPAA" compliant policy. This guarantees you health insurance availability in the future.

It is VERY IMPORTANT that you NEVER CANCEL any existing policy or coverage UNTIL YOU HAVE WRITTEN CONFIRMATION OF INSURANCE COVERAGE from another insurance company or state agency!

OK, let's get going:

You just lost your job and inexpensive access to health insurance. Your income just went way down and your health insurance cost probably went way up.

LOOKING AT COBRA:

On February 17, 2009, the President signed the American Recovery and Reinvestment Act. The new law provides a subsidy that may reduce, by 65%, the cost of COBRA or Georgia state group health continuation insurance coverage for workers who lose their jobs. (CLICK TO LEARN MORE)

Often employer's group policies provide extensive coverage with low deductibles and low co-pay amounts. (The amount you paid out of your pocket for doctors visits, drugs, etc.) Now that you are unemployed, you have the right to keep that last employer's policy because of a federal law called "COBRA". Check with COBRA for more information.

LOOKING AT HIPAA:

Also, as long as you stay continuously insured with something called a "HIPAA" compliant policy, the group policy with your next employer must provide you health insurance coverage, even if you have a medical condition that would otherwise make you uninsurable. Check with HIPAA for more information.

WHY SO HIGH?

The "COBRA" pricing is the approximate total cost of the policy your employer provided for you. The amount YOU paid out of your paycheck was probably only a portion of that actual cost. Your employer paid the balance. Now that you are no longer employed there, you can continue this policy. However, the full cost will now be shifted to you.

STRATEGIES:

I. FOR THE UNINSURABLE:

If you have a medical condition that would make you uninsurable, staying with the COBRA policy is probably your best option. Unfortunately, it may be your only option.

The definition of "uninsurable" can vary from state to state and insurance company to insurance company. Generally speaking, if you have recently received a diagnose or have been treated for a life threating condition or a serious chronic condition, you may be regarded as uninsurable by private insurance companies.

II. FOR THE INSURABLE:

If you or your family members have no medical conditions that make you or them uninsurable:

A.) Consider the features of your group policy, which has now become your "expensive" COBRA policy, full of low deductibles and co-pays. If you need to save money while staying insured, you will want to choose the highest deductible and co-pay amounts you can stand. Right now you are trying to stay insured for the large cost items that might cause financial ruin, not every sniffle and bruise. If you pay to cover the small things out of your own pocket, you may save big dollars on insurance costs.

Look at the features and costs of separate plans versus a family plan, especially for couples.

Remember, as long as you stay continuously insured with a "HIPAA" compliant policy, any insurer must offer you health insurance coverage, even if you have a medical condition that would otherwise make you uninsurable.

Check your State's Department of Insurance website for possible HIPAA options when coming from Individual coverage.

B.) Consider the coverage of the individuals of your policy, children and adults:

COVERAGE FOR CHILDREN:

There are two options: Government Coverage and Private Insurance

1.) Government Coverage for Children:

A federal program helps states provide a program that covers kids from age 0 to age 19. The costs are usually much less than the cost of insuring them with COBRA policies.

For example, in Georgia that program is called PeachCare For Kids. It provides medical, dental, vision, prescriptions and pays from the first dollar. You pay no deductible or co-pay. It covers kids to age 19. Ages 0 to 6 are FREE. Costs range from $10 to $35 per month per child. Most doctors that accept Medicaid accept PeachCare. You must qualify based on income. For example: a family of four with current income of $48k/year or less qualifies.

Live in Georgia? Check with PeachCare for your own eligibility and costs.

2.) Private Insurance for Children:

If you are not eligible for PeachCare type coverage for your kids, you may still be able to save a good bit of money by choosing the private insurance options described for adults.

Learn More about Permanent Health & HSA Coverage/Get a FREE Quote, for your kids.

COVERAGE FOR ADULTS:

There are three options of private insurance: Short Term Medical, Permanent Medical and Health Savings Accounts (HSAs).

So, let's look at the three options for private insurance for adults:

1.) Short Term Medical Insurance:

It is designed specifically for people between permanent health plans. You pay month-to-month as long as you need it for either 6 or 12 months. This is "immediate issue" insurance, meaning if you qualify, you can get it online and have it effective usually by the next business day.

Policies like this can save you considerable money.

A Short Term Medical Insurance example:
45 to 49 year old:
$1,000 deductible 80/20 co-pay.
$2,000 maximum out of pocket expense.
COST: $135 per month (six months)

It is also possible to insure a couple or a family with Short Term Medical Insurance.

Learn more about Short Term Medical/Get a FREE Quote.

2.) Permanent Medical Insurance:

It is designed to provide insurance for as long as you need it. If you have a "pre-existing but insurable" medical condition, you may still be able to get this insurance, but the cost may be higher because of the extra risk. (The cost could still be less than COBRA.)

By choosing higher deductibles and copay amounts, you may find that this type of coverage costs much less than your COBRA option.

Once approved and put in place, this is health insurance you can keep regardless of what happens with your job. (Now you're in control!)

Learn More about Permanent Health & HSA Coverage/Get a FREE Quote.

3.) Health Savings Accounts (HSAs):

HSAs could offer even greater savings, more control and possible tax advantages.

HSAs are special "Deductible First" policies that are designed with a special account similar to an IRA. "Deductible First" simply means that the insured pays the deductible amount out of their own pocket first before insurance coverage applies. HSAs allow you to deposit pre-tax dollars into that account to help pay for deductibles and some other items not covered by insurance. Your HSA account can accumulate and even have various investments inside it. This HSA approach can take some of the pain out of a "Deductible First" policy.

HSAs often allow for considerable savings over COBRA costs and put you in control of your health care costs and coverage. There are many other advantages as well.

Learn about HSAs in the section Permanent Health & HSA Coverage/Get a FREE Quote.

SUMMARY:

By using Permanent Insurance, Short Term Medical Insurance, HSAs, State-provided coverage for kids, or some combination of these tools, COBRA costs can be reduced sometimes by hundreds of dollars per month. Also, maintain the proper "HIPAA" compliant policy so you will be covered by other group policies in the future.

Thanks for taking the time to read this Short Course
and good luck with your job search!