Frost: Extending COBRA Subsidy Likely Rests on Health Reform Bill Passage

Employee Benefits Advisor magazine’s Lydell Bridgford reports on 11/1/2009 that the likelihood of Congress extending the COBRA subsidy beyond Dec. 31st “all depends.”  The link to trackback and read the full article in the Nov. 1 edition of  Employee Benefits Advisor magaizne is listed below. 

Individuals and families who are hoping that Congress acts in time to keep COBRA affordable may be unnecessarily putting their families at risk by not exploring other alternatives now.  The typical year-end stampede for health insurance that occurs due to companies that have year end open enrollment and year-end terminations and layoffs by many firms has already begun. 

Add to this the millions of indviduals and families that are  at the end of their subsidized COBRA coverage.  Then add to this the mass layoffs at most health insurance companies this year which that there are fewer humans who are qualified to underwrite and process health insurance applications.

What this means is that it will be  harder than ever to get an individual health insurance application approved at year end.   If Congress doesn’t extend the COBRA subsidy, which is anyone’s guess, then those who haven’t explored other options will likely have to pay almost three times as much for COBRA than what they have become accustomed to paying under the nine month COBRA subsidy. 

So why why shouldn’t people procrastinate and just wait and hope for Congress to act?  Because if Congress fails to act and does not extend the COBRA subsidy, (as if that has never happened before) there will be a tidal wave of millions of individuals and families who can’t afford COBRA unless the government pays two thirds of the cost.  Then at year end, the worst possible time of the year, these people will overload the health insurance carriers’ capacity to underwrite and process applications.  Which means that those same people whow can’t afford the true, full cost of COBRA coverage will not be able to get covered before their COBRA subsidy expires. 

The above is not meant to be alarmist or pessimistic, it is intended to make individuals and families who are receiving the COBRA subsidy TAKE IMMEDIATE ACTION NOW, to avoid the above scenario.  Explore your options and complete a health insurance application now, even if it means you cancel it and get your money back  if Congress extends the subsidy, so that you can avoid the rush.

If you follow this link, you will be able to review all of the individual health insurance plans and view standard quotes from all of the “A” rated health insurance carriers in Texas.  You will then be contacted by Mike Chapman within 24 hours so that he can discuss with you on a confidential basis your family’s health history so Mike can give you some additional guidance on which plan or plans provides the best level of coverage for what your family can afford, and what the final (after underwriting) rate and what, if any,  policy exclusions might apply. 

As opposed to other online health insurance services that collects email addresses and phone numbers in exchange for quotes and then sells that information as “sales leads” to literally hundreds of agents who will pester you for the next ninety days (if they bother to conform to No Call laws), Mike is an experienced independent broker who represents all of the major carriers for individual and group health insurance.  Mike goes out of his way to explain in plain English his recommendations to his clients.  You can also contact Mike Chapman at (888) 398-6246 or 214-764-6315 to discuss your own and your family’s options in confidence.

The full text of the Employee Benefits Advisor Magazine article can be read by following this link.