Cobra Expiring end of April

[sunkissed64]

I live in Florida

Hi,

The company I worked for shut down ther Miami offices so I lost my job. My former employer (main office located in South Carolina) offered me 6 months of Cobra insurance as is required under South Carolina law. My Cobra policy runs out on April 30. I was offered a conversion policy to continue coverage but they're charging a premium of $700 a month, which I cannot afford. I was paying close to $400 a month for the Cobra monthly payments and that was bad enough but almost doubled for the conversion policy? UGH! Anyone know why the rate is so high? Sure it's great because I get to keep my current coverage that pays for my preexisting conditions but I just can't afford it.

I have been shopping around for an individual policy and my head is spinning from all the information I need to process. One of the companies I asked for a quote turned me down straight out because of preexisting conditions and because I was offered a conversion policy and am going to decline it because of how expensive it is.

Time is ticking down and I am wondering if anyone could advice me on what the best way to proceed is. Should I try to stay with my soon to be expiring insurance provider (they offer and individual policy that looks good)? I'm thinking since it is the same insurance provider I'd have a better chance of getting coverage.

There is another insurance company that I am seriously considering but I am hesitant to apply til someone hopefully advises me. I do remember back in the day when I didn't have insurance that once one insurance company denied me insurance I was pretty much screwed when it came to applying to other companies.

I'm so concerned about this I'm stressed beyond belief. Please if anyone has some advice to help steer me in the right direction reply asap because I am running out of time.

Thanks.

[cbg]

I can't tell you what to do. I can tell you, though, that the reason the conversion policy is so high is that you are no longer receiving the benefit of the group rates that you received under COBRA. Health insurance is unbelievably expensive and a group policy (under COBRA you receie the benefit of the employer's group rates plus 2%) is always going to be cheaper than an individual policy.

As a matter of fact, at least in my part of the country $400 for COBRA would be considered an exceptionally good rate.

[somarco]

I will take issue with the statement that group insurance is cheaper than individual coverage. That is rarely the case except when the applicant is over 55 or in declining health.

The conversion policy is expensive because it is covering pre-ex conditions. The only folks who choose conversion are those with health problems that could be expensive to treat.

There is no way anyone on this board can recommend an individual plan without more details. Even then, they would have to be knowledgeable of what is available in your area, something only a local agent can do.

The fact you have been declined by one carrier limits your ability to find coverage with another carrier. You are digging the hole deeper. Best bet is to find a local agent with more than 5 years experience in the industry and one who represents multiple carriers.

[cbg]

I will take issue with the statement that group insurance is cheaper than individual coverage. That is rarely the case except when the applicant is over 55 or in declining health.

Maybe in your part of the country. Not where I am.

I am currently in the process of trying to find either individual or group coverage for my husband and/or his company (he owns a small business) since his current coverage expires in a few months. I assure you that in my part of the country, my statement is correct.

[somarco]

MA is one of those funky states that set's way too many mandates on health insurance, which drives the price through the roof.

It could be worse. You could be in a state where carriers are required to use community rating in addition to issuing coverage regardlesss of prior health history.

There are only 5 states as I recall where carriers are prohibited from underwriting medical conditions. As such, the healthy marathon runner will pay as much as a hypertensive diabetic with congestive heart failure.

So about 90% of the country can many times find more affordable coverage outside of the group market.

[cbg]

MA IS one of those states with mandatory community rating for groups of under 50. At least, they are unless the law has changed since 1998, which is when I last worked with small groups.

[somarco]

I was referring to community rating for individual policies. This occurs in 4 states that I know of; NY, ME, NH & VT all have community rating for individual policies as well a "guaranteed" issue.

Makes individual policies 3 - 4x the price of similar policies in states with less regulation. Also, I understand MA does not allow high deductible (HSA qualified) individual plans, only first dollar copay plans with low deductibles.

Now they come back and mandate health insurance.

MA is going to be interesting to watch as they implode . . .

[cbg]

I'm of two minds here.

On the one hand, I am outraged that our idiot of a governor (I promise you, I did not vote this jackass into office) thinks that you can solve this problem by simply mandating that everyone has to buy insurance. Gee, you think maybe a few of us already thought of buying insurance and simply can't afford it?

On the other hand, I have crappy insurance myself and for complicated reasons involving his divorce from his first wife, I can't get on my husband's insurance, which as I already mentioned will not continue after the first of next year. So I'm curious as to what kind of policies the state will provide and whether I can get better insurance for the same money.

Trust me, I'm not holding my breath.

[somarco]

Seems we are creating our on thread here . . .

You are obviously much closer to the issues in MA than I am. All I know is bits & pieces and it is not pretty.

This "movement" to mandate health insurance, whether the MA proclamation, or the MD (and other states) so-called "Wal-Mart" bills, is just plain stupidity. The politico's who come up with such stuff need to drive off a bridge.

Oh yeah, I forgot. That already happened and it didn't fix anything . . .

[cbg]

This "movement" to mandate health insurance, whether the MA proclamation, or the MD (and other states) so-called "Wal-Mart" bills, is just plain stupidity.

No argument here...

[Jennalp85]

It can be difficult to find affordable insurance that will cover a pre-existing condition. Insurers are typically unwilling to cover a condition that they already know you have. From their perspective, it most certainly guarantees that they will lose money. For this reason you may want to consider shopping around for a policy that excludes coverage of your medical condition. You will likely find that the premiums excluding the condition are much lower than those you receive including them. If you are considering this option, determine what your condition will cost you if uncovered. How much will you pay for medical care and prescription costs pertaining to the illness? Combine the amount you determine with the rate of the premium that excludes the coverage of this condition. Compare this result with with the $700 estimate you received. Is the cost greater or lower? I think this is the most useful way to find yourself a better rate. It still may not be as low as you were initially hoping, but it's worth a try.

If you have any other questions regarding this topic or other insurance related issues, please feel free to visist the [URL="http://http://coveragexchange.com/forums/default.aspx"]Insurance Forum [/URL]at The Service Exchange and post them there.

Best of Luck,
Jenna Paulson
[URL="http://www.coveragexchange.com"]The Service Exchange[/URL]

[ecmst12]

Does having continuous coverage exempt a pre-existing limitation in an individual policy the way it (usually) does with a group policy?

[cbg]

No, the laws limiting pre-ex conditions only apply to group coverage.

[somarco]

An ER (exclusion rider) is one of the most dangerous things you can have on your individual policy. Take hypertension for example.

Most people with hypertension have the disease under control with diet and maybe one or two meds. The thought process is they will accept a policy with an ER for hypertension, never considering other conditions that can be denied at claim time because of the ER.

If you have a stroke, or heart attack or renal failure . . . all of these could be tied back to hypertension. If so, the claim could be denied.

It would be better to have a policy with a higher deductible (and lower premium) than to jump at a policy with an artificially lower premium but an ER.