Leaving: Health Insurance: Alternatives
From HPAlumnipedia
HPAlumnipedia > Leaving > Health Insurance > Alternatives
Following are many tidbits, in somewhat random order, related to medical and other health coverage issues, while transitioning. There is a separate section (Benefits) of the HPAlumnipedia for post-transition insurance/benefits issues.
Liz Murphy, Sep 2002:
We bought insurance through the Alliance for Affordable Services. Folks can check them out on the web at www.affordableservices.org. The agent we deal with is Mike Lowe at 970-532-7223. He has an office in Fort Collins, Colorado... As a comparison, our COBRA payments for a family (includes medical, dental and vision) is about $1000. The new coverage (medical, and discounts on dental and vision) costs about $550...
Brad Miller, Sep 2002:
...I used the Alliance for Affordable Services for almost three years. I never had any problems with them but I recently switched to Fortis which is a partner of State Farm Insurance. Contact a State Farm agent if you are interested. I switched to Fortis because it was, for me and a teen dependent, a measurably better value. Also, Alliance for Affordable Services requires that you pay a nearly $30.00/month "membership" fee that I found of no value. Alliance for Affordable Services is not an insurer; they use Midwest Life Insurance of Tennessee as the underwriter.
Jeff Okamoto, Oct 2002:
Blue Cross/Blue Shield rates are much lower than COBRA. I was already on Blue Cross from the job-after-HP, and COBRA is costing me over $300/month, whereas an individual plan would cost about $150/month. However: The copayments for the PPO plan are much higher for doctor visits: $30+. At least prescriptions are cheap ($7+), they cover chiropractic and allergy shots. Read the exclusions carefully! I'm also pretty sure that that COBRA payments are tax deductible. If that's so, I will have no problem going over the 2% AGI for medical expenses.
Dave Martens, Feb 2003:
...I went to the eHealthInsurance.com web site yesterday to see about getting health insurance coverage because my COBRA coverage runs out... Because I have a preexisting condition, the web site suggested I call their customer service department.
When I called customer service today, they said that I would have a very hard time getting coverage from any of the companies they represent, and they suggested I call Blue Cross.
So I called Blue Cross today, told them of my predicament, and they immediately told me about HIPAA, saying that since I have been on COBRA for the maximum duration and it is now running out they are required by law to offer me their two most popular plans, regardless of any preexisting conditions, at the regular rate.
So I now have health insurance, with full coverage (no exclusions for preexisting conditions), for less than I was paying for the COBRA coverage with United Healthcare.
If anyone in this group is in the same position as myself, I urge you to call Blue Cross (800-777-6000), or any other health care provider, and tell them you want coverage via the HIPAA provisions...
Perry Scott, Dec 2002:
...if your income is below a certain amount, your kids can be insured by the State of Colorado for free. If you're collecting unemployment, you qualify. I think it's called Colorado Children's Health Plan (CCHP). At the time you apply, your kids can't be on any other plan, which is the scary part. There are other state/federal benefits -- you have to remember that there is a "safety net" for people like us who don't make much money...
Mark Rogers, Oct 2003:
As a former HP'er from Vancouver, WA, I have taken the career change and am now self-employed... I am happy to also provide whatever assistance to folks who are either in WA or OR. I am a licensed Health and Life agent with MEGA Life and Health, who the National Association of the Self-employed sponsors. Both states have different rules on getting health insurance, and so for folks who are from HP and looking for alternatives outside of HP, I might be able to be of assistance. Visit nwmicrobusiness.com...
Danny Low, Mar 2004:
Most health insurance plans do not want to take on new members who have pre-existing conditions (such as diabetes or a previous heart attack). They prefer healthy members who will pay premiums but never use their insurance.
HIPAA is a federal law that says you cannot do this. HIPAA says that if you are currently covered by health insurance, then a health insurance company must take you on even with the existing condition. However, the health insurance company is allowed to charge you more to cover the additional cost to them of the pre-existing condition.
So if you have no pre-existing condition then the normal plan is the way to go. If Kaiser decides you have an pre-existing condition then you have no choice but to go with the HIPAA plan and pay the extra fee if you still want to stay with Kaiser. The normal procedure is to try for the normal plan and only if they reject you for a pre- existing condition, do you insist on the HIPAA plan.
Someone wrote:
The following web site may be helpful to you. Coming off COBRA, I know at least Blue Shield (or it could be Blue Cross) has to offer you their two best plans at normal rates with no pre-existing conditions clauses. I'm sure that applies to many insurance plans. As long as you are coming directly off COBRA and used up all your COBRA term, then you are protected by HIPPA. See also this website.
Martin and Barbara Marx, Jul 2005:
As it turns out, COBRA was a lot more expensive than purchasing our own medical insurance through either State Farm or Blue Cross. In our situation, Blue Cross is offering the best deal right now. For life insurance we already have an account with State Farm so we just stayed with them for term life insurance for both of us. It was reasonable enough.
Anonymous, Sep 2005:
If you are WFR'd and think you might be applying for an individual health plan after COBRA, don't make the mistake I did and figure it's a good time to take care of any minor health concerns that you let slide while working fulltime. The exhaustive questionnaire usually goes back two years and asks about all doctor visits, prescriptions, etc. Even if you have had two bouts of bronchitis a year for which you saw a doctor, you're likely to pay a much higher rate or the high risk "HIPPA" rate. And if you get allergy shots, I'd stop them if at all possible and use OTC meds. If you take one prescription on a regular basis you're probably okay, but not two. We ended up paying $18K a year for our family of three, and that is not unusual, although if you become an independent contractor you can deduct medical premiums and expenses, which is a huge benefit.
