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Since the employee is responsible for the full cost of the medical coverage during COBRA, they are often surprised at the high cost of the COBRA coverage.









There are quality individual and family health insurance plans available... And depending on the coverage selected, these plans could be substantially less than the cost of COBRA.











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Issue: #6 Special Edition       November 2008
Hi ,

We recently received an email from an online insurance company that was soliciting business.  They were using the recent spurt of layoffs as the marketing hook.  While on the surface that may appear to be similar to ambulance chasing, they brought up a point we feel needs to be addressed - the COBRA option from your employer may not be the best option for you if you are laid off. 

COBRA (the acronym for a federal law) allows an employee to keep certain benefits after they leave their employer.  Medical insurance is the one that gets the most press.  Since the employee is responsible for the full cost of the medical coverage during COBRA (remember, your employer was subsidizing the cost while you worked there), they are often surprised at the high cost of the COBRA coverage.

But many people are not aware of their health insurance options.  There are quality individual and family health insurance plans available from companies like Aetna, Anthem, Assurant, Coventry (Southern Health), and Optima Health.  And depending on the coverage selected, these plans could be substantially less than the cost of COBRA.

Options
If you or someone you know was recently laid off, the loss of employer health insurance may be one of the biggest challenges you face.  So what can you do?  What are your options?
  1. Accept COBRA
  2. Research different local companies and plans available and try to do it yourself
  3. Use one of the internet sites to get quotes.  But where is the person to whom you are talking?  How much experience do they have?  Do they know the local market (much less can they find your city or state on a map)?
  4. Talk to a local agent you trust who knows YOUR area's market and works with all of the major health insurance carriers in the area
Obviously, we like option #4.  And there are very good reasons for you to consider that option.  First, there are lots of good local agents you can contact (we like to think we fall into that category).  Second, the price is the same whether you pick options #2, 3, or 4.  Why not lean on the experience of someone you know and trust.  Third, a good agent can evaluate your situation and help you determine if you should stick with option #1 and accept COBRA. 

A couple of important notes:
  • COBRA coverage may be the best option for some people - especially for those with certain pre-existing medical conditions, or those who are pregnant.
  • You have some very definite time frames in which you can exercise your COBRA option.  It is important that you know these time frames and make your decisions appropriately.
If you are considering COBRA or looking for affordable coverage, click here to contact us, or call us at the numbers below to learn more about your options and how we can help. 

And if you know someone who has lost their job, please forward this email to help inform them of the COBRA alternatives available.
 
Have a great weekend!
 
Alan Jones
TPA Benefits, LLC
804.387.3325
877.381.6935 toll free
* Individual and family health insurance is a local product.  Based on where you live, there are differences in coverage, price, and companies doing business in that area.  This certainly applies from state-to-state and even within states.  Here in Virginia for instance, the markets in Lynchburg, Virginia Beach and Fairfax are as different as they can be.   So if you are reading this and you live outside of Virginia, we may be limited in what we can do for you.  But that goes back to one of the benefits of option #4 above - there are lots of good local agents you can contact.