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The Obama plan calls for the government to pay 60% of the cost of COBRA. How does one get into that paln? When does it begin??
Thanks
HB

COBRA is great, we need more programs like it. I must object to what was said today on the radio program, though, that it's "fair" that COBRA premiums are treated just like medical expenses by the IRS. Premiums are not medical expenses, they are very different for working people. Healthcare premiums are fully deductible for working employees, no 7.5% floor threshold, just like the premiums are deductible for the company-paid portion. COBRA premiums are not deductible from self-employed peoples income statement. Amazing! Big injustice in the tax code, and big Democratic Party cowardice to be unwilling to take this on.
Really, we need to end the tax subsidy of all healthcare premiums for normal course of business, then we as a society can look at offering deductibility for lower income people (employees, self-employed, COBRA, or non-working people). We could also offer tax deductibility of health care premiums during recessions and depressions. But even as I pay non-deductible COBRA this year as a newly self-employed person, I don't want the deduction. I want an end to tax-deductibility of all premiums, to set the field back to level, and thus raise a ton of money to pay for universal health insurance initiatives. This is the right thing to do, and I wish I were shocked to not hear it in the presidential campaign, but the unions and companies oppose it.

Is it time to ask why this system is better than a European-style state-run (dare I say socialist) health plan?

The other insult is that you can work for decades, putting all kinds of money into the profit-motivated insurance system while you're young and healthy, but get absolutely nothing to show for it if you lose or change jobs (other than this 18 months that you get the priveledge of paying for out of pocket). Once your health begins to fail from ageing, the government winds up picking up the tab via Medicare, anyways. Seems like a huge scam to me.

I was layed off at the end of 2006. The employer paid the full coverage for the 3 months following my leave and 50% for 3 months after that. I wasn't able to continue it on my own because the cost of family coverage was $1300.00 a month.

My 23 yr old daughter had a dr.s appt on a Monday and the following day I received a letter advising me that she was disqualified from my health insurance coverage the friday before. The bill for that dr visit was over $1,000. I picked up Cobra coverage for her for the one month for about $400.00. the coverage was retroactive so it covered the date of service. I wish I had advance notice of discontinuance of her eligibility. (for some reason I was under the impression that as long as she was a full time student she was covered). I was glad I was able to get the Cobra.

Brian,

That's why ppl should negotiate for FULL payment of health care by employer and take a reduction on your paycheck. Both parties would still come out the same or ahead.

I don't get it.. why is it helpful when you the laid off person pays for all of it? If the government wanted to really help why not take the employer's role for say.. 8 months?

Please point out to Jude from The Bronx that he should look into ADAP, or NY's incredibly thorough AIDS Drug Assistance Program. If he does receive a COBRA, he needs to know about APIC then. Too many acronyms to remember what that one stands for, but essentially the state will pay his COBRA payment to keep him healthy.

According to the law, you cannot be denied coverage for a chronic condition IF you have had health insurance coverage for the 12 preceding months. COBRA can help you maintain your coverage until you select your new health insurance plan or get a job that has health coverage. This was important for me because I have MS. COBRA may be expensive but so are all of the medications that MS patients have to take.

I commented a few days ago saying this, but I can't stress how much I wish I researched and found my own health insurance sooner instead of having my savings eaten away by buying COBRA for the full term. I get my own health insurance now through the artists' advocacy group Fractured Atlas. Look into what they offer, what the Freelancer's Union offers, Healthy NY, etc... Doing some homework is totally worth it.

My COBRA payments for a family comes to over $1500/month. This is way more than we ever use in healthcare costs. We would even have come out ahead including the birth of two children by paying out of pocket.

What are the options for "catastrophic" coverage? I understand that the options vary state by state. The guest mentioned Husky coverage for CT residents. What exists in NY for "hit by a car" coverage or huge unexpected costs, which is all we really want, even as a family of four?

New York is very different from the guest's home state. If you live in NY, COBRA is the best deal by far, both in coverage and in cost. NY is a "must-write" state, which means that anyone can get a non-COBRA plan. The downside is that it's very expensive (10K/year for an individual in an HMO in NYC), and coverage is inferior. Also, in NY, if your coverage (COBRA or non-COBRA) lapses for 63 days, the non-COBRA policies can impose pre-existing condition exclusions.

People should know that insurance is regulated state-by-state (tho Cobra is a national reg) and so regulation gives other provisions. I.e., there's a rollover period for people who lose insurance in NYS so that new plans signed up for in that period can't impose look backs for preexisting conditions: check w/NYS department of insurance.

Also: there's an coalition advocacy group--Metro Health Care for All Campaign (http://metrohealthcare.org/) that can refer to organizations that may provide specific assistance depending on people's circumstances.

In NY state, Healthy New York is a great insurance option for unemployed folks. I am a sole proprietor who makes a low income, so I qualify for a pretty good policy for under $300/month that covers my medical copays, prescriptions and emergencies. It's been a lifesaver for me.

In New Jersey, my COBRA would've cost me $512 a month, a quarter of the income I get from unemployment per month. Is that standard? If so, there's got to be a better way! I am now "uncovered."

Cobra is tax deductible

Look into Healthy NY, it is $600 a month for a person usually

I know it seems like sticker shock to some b ut after getting laid off by a NY investment bank recently (starts with J and P and rhymes with Organ) and looking at how much the bank DID NOT subsidize its a relatively modest increase. I think a lot of firms recently have been slowly moving their contributions lower every year.

Can anybody comment on the Freelancers Union Health Insurance? Cobra is still very expensive. The FIC plan will cost us about $466 per month for a family of four, with a very high deductible though: $10,000 per person and $20,000 per fammily. Does it really works? Has anybody had any experience with it?

Are there any options with in COBRA for individual coverage not related to a company? if so, how much is that?

#19 look into Healthy NY or Child Health Plus do a google search to get the NY state site

I lost my job at the end of March and my Cobra payments for Horizon Blue Cross / Blue Shield (in New Jersey) were about $400 per month (I'm single). In October, my payments went up another $45. I have explored other insurance plans, and if I set up a sole proprietorship in New York, I can get insurance for about $350 per month.

Todd,

You may just want to get a basic hospitalization insurance which is much cheaper. You don't get covered going to the doctor. They have a deductible. But, hospitalization is the most expensive part of Healthcare. It's the thing that can bankrupt you. So you may want to get a basic hospitalization policy via Blue Cross or something like that.

The reality of COBRA is that it is an entitlement for the insurance company. The terminated employee is paying for his own benefits. The employer has the advantage of having a larger group to insure and therefore gets better rates. There should be no reason to limit COBRA to 18 months, if not for the insurance company.

What alternatives for health insurance are available for NY state residents? I was laid off two months ago and COBRA was absolutely unaffordable for someone with no income. The cost was nearly 700 a month, and another colleague who left the office was/is paying 2000 a month for his family of five.

Welcome to the club. I've been making $15 /hour and paying $600 month for health insurance for 5 years

If I am signed up to a plan at work (my company has 3 different plans) and loose my job. Can I sign up to cobra on the cheaper plan that the company has?

COBRA is unaffordable period!

Thank God for the CORBRA many years ago, it covered our medical expense for the birth of our baby girl. At the time of our coverage we only paid $480.00.

Considering that the maximum unemployment benefit in New York is $405 a week, many people simply can't afford COBRA. Since I've lost my job I'm going without health insurance because I can't afford $500 to $600 a month.

Is there a retro-active Cobra insurance? That is, can I aquire it after I go the hospital for something.

I was laid off from a job with too few jobs for COBRA eligibility. Why is there a minimum when the former employee and not the former employer has to pay the entire premium?

Maldo,

I do not think so. You should look into the Healthy New York Plan. But, generally they require you to have a job. If you are a freelancer, you can try the freelancers union for New York. But, there are work requirements to qualify.

COBRA stinks! I was "terminated" from my job because I got sick and couldn't do the work. I couldn't do without health care -- because I'm sick! and also because I have a teenager in college who I need to have covered -- so I elected coverage under COBRA. It's THIRTEEN HUNDRED DOLLARS A MONTH! And the worst part is, I have to stay on COBRA (for many months) until it expires, because I have a pre-existing condition that won't be covered by any health insurance I buy after COBRA if I quit COBRA before it expires. Confusing? Yep! Incredibly expensive? Yep! Stinks? Yep!!

Two questions:

1) My COBRA runs out at the end of the month. Have their been any extensions like there have been to unemployment benefits?

2) If I am covered under my partner's plan, and we separate, can I stay on the plan via COBRA?

Thanks!

COBRA is very, very expensive. My only advice can be directed at generally healthy women. If your most important medical care is gynecology, don't get COBRA. Go to Planned parenthood or your local womens clinic where you can get your basic care, exams, tests and birth control for very little money, or even free.

I got COBRA for 18 months after I left the company. Can I extend this period?

Make sure you do are not late in your payments. If you miss it you lose the benefit. Cobra is better than most regular insurance, it's still cheaper than you going out and getting insurance.

Also you are bound by the same limits and rules of your company plan.

Also, you can deduct the Cobra payments from your taxes. But you have to meet that 5% threshold of your itemized deductions. (whatever the rule is for medical expenses)

I once heard that one can sign up for Cobra retroactively. Does that mean that I can take the risk, go uninsured, and if I have to go to the hospital within the Cobra time (6 months?) I can sign up retroactively and have my expenses reimbursed?

I got COBRA coverage for 18 months after I left the company. Can I extend this period?

Similar to the previous question, if your employer later decides to either switch companies or get rid of his plan, what are the options of an individual who has for example been on COBRA for several months.
Thanks so much for these segments.

I assume this is a follow-up to your segment the other day and it's a good idea. Following up myself, I read on an informational web site that, if your company plan is dissolved -- if your company goes out of business, for example, and ends its benefit plan -- you are not eligible for COBRA, because COBRA "continues" benefits only regarding existing benefit plans. While this requirement may be conceptually consistent with the notion of "continuing" benefits (in that you can't "continue" something that no longer exists), such a provision would seem to defeat COBRA's purpose, which is to keep benefits flowing, albeit at a high cost, to people who have lost their employer-provided coverage. What do people do in such circumstances?