Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : World Outlook -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (1515)	3/23/2003 1:11:41 AM
From: Don Green	Respond to of 48855

Layoff issue: health insurance By Margaret Steen Mercury News Posted on Sat, Mar. 22, 2003 Health insurance is a huge source of anxiety and confusion for many laid-off workers. I asked three people for help answering some basic questions about health insurance after a layoff: Marian Mulkey, program officer with the California HealthCare Foundation; Marlene Muraco, partner with employment law firm Littler Mendelson; and Kirby Hutson, principal with Mercer Human Resource Consulting. Q I've just been laid off. Can I still get health insurance? A If you stop working for almost any reason, you can usually still get health insurance through your former employer's health plan under a federal law called COBRA. (This coverage would also apply to members of your family who were covered under your policy. And COBRA can apply in situations other than a layoff, such as a divorce.) Your employer should inform you about your rights under COBRA. As with any government regulation, a number of exceptions apply; for example, the employer has to have at least 20 employees. There are also two major caveats, both of which come as a shock to some workers. First, the company -- and its health plan -- must still exist. If your company goes out of business, or if it simply stops offering health insurance, then there's no longer a group plan for you to participate in. Workers at the many companies that have gone under during this downturn have found this out the hard way. (If your company is acquired, in most cases you will still be offered COBRA coverage.) Second, COBRA coverage is expensive. Most employers pay a large portion of the cost of their employees' health insurance. COBRA does not require them to keep doing this once you're no longer working there. You can be charged the entire premium, plus a 2 percent fee for overhead. The cost can be hundreds of dollars a month for a family -- not an easy expense to take on when you've just lost your job. Q Do I have alternatives to COBRA? A You may be able to find coverage for less than COBRA will cost. If your spouse has a job that offers insurance, your least expensive option may be to join that plan. You may also be able to purchase coverage on your own, especially if you're young and healthy. COBRA is most helpful for people who will be turned down for coverage on their own because of a pre-existing condition. Q What happens when my COBRA coverage ends? A If you exhaust your COBRA coverage or aren't eligible for it, you will probably qualify for coverage under another law called HIPAA. It requires health plans that offer coverage to individuals to accept you. California's version of COBRA, Cal-COBRA, will offer additional protection as well -- but only to people who began their COBRA coverage on or after Jan. 1, 2003. This law has its own set of technicalities, but in general, it will mean people who exhaust their 18 months of COBRA coverage will qualify for an additional 18 months of coverage. If you have a disability, you may be able to purchase additional coverage as well. Q My employer was too small to be covered under COBRA. Do I have any protection? A Yes. Cal-COBRA covers employers with two to 19 employees who are not covered by the federal law. Q I think I should have been offered COBRA coverage when I was laid off, but I wasn't. What can I do? A One place to start getting answers to this question or any question about your situation is the state Department of Insurance. Its hotline is (800) 927-4357.