COBRA the only answer?

MsLady

I have an associate that cannot afford COBRA. To my knowledge there are no other options, but you all are so resourcful. Does anyone have other suggestions of a less expensive way to retain short-term insurance? The EE will need the coverage for about 5 months. Thank you all for your time. (I am in MO)

Kari

Theresa Gegen TX

If the employee is in generally good health, he or she should just contact an insurance broker. Oftentimes the employee can get coverage for less than cobra. One option for an employee in good health is to get insurance with a relatively high deductible. Then the employee will be covered in the event that anything expensive (like a need for surgery occurs).

If the employee has poor health or an ongoing health issue, though, he or she should do their best to pay for COBRA. Any new insurance won't cover the preexisting condition. And if the employee gets a job a few months out, having proof that the health coverage did not lapse could be important in having the preexisting condition provisions in any new erisa policy waived.

Good Luck!!

Nat

I don't know if you have Blue Cross/Blue Shield in Missouri but they offer an individual plan that is much cheaper than COBRA. Of course, the healthier you are, the cheaper. Here in NC it's called Blue Advantage. We have quite a few employees who do this rather than put their child on our insurance because it is much cheaper than our group rate. Our broker handles it for them. If it was for a shorter period of time I might talk to them about playing the election days game since they have 60 days to decide about COBRA and then another 45 days to pay for it.

cebudragonlady

If the employee has children, some HMO's may offer Direct Pay
rates cheaper than COBRA group rates. I enrolled my step-daughter
in a Direct Pay plan years ago, and kept it that way even after finding work- it is so much cheaper than the group rates a lot of small companies can offer.


Chari