Reprinted from the Health District's quarterly publication mailed to district residents (spring 2000)
TOPIC: COBRA: Your Health Insurance Backup
 
by kathy hayes

Leaving your job doesn't mean losing your health insurance.

If you worked for an employer with more than 20 employees and you weren't terminated for "gross misconduct," then you're entitled to the same health insurance coverage you had while you were working.

The Consolidated Omnibus Budget Reconciliation Act, better known as COBRA, lets you extend your healthcare coverage for up to18 months. For families dealing with crises such as unemployment, death, or divorce, spouses and dependent children may receive COBRA coverage for up to three years.
"The healthcare benefits an individual receives under COBRA are identical to what the employee had when he or she was employed," says Etta Solomon, an analyst with the Colorado Division of Insurance. This includes medical, dental, prescription drug and vision care, but not life or disability insurance. 
interested?
Visit the website insure.com and read "Know Your COBRA Rights" for extensive information about eligibility and factors to review when considering COBRA. Or call the Colorado Division of Insurance, (800) 370-3745, and ask to speak with an insurance analyst.

But be aware that with COBRA insurance, you're responsible for paying the entire premium. "Many employees don't realize that employers subsidize a significant portion of their health insurance," Solomon points out. 

Paul Fronstin, a senior research associate with the Employee Benefits Research Institute in Washington, D.C., adds, "For a family, you figure COBRA coverage is going to be around $400 or $500 a month." 
Also, if your former employer changes health plans during your COBRA period, you'll have a new premium to pay.

To determine if COBRA is the best option for you, look first at the cost of different plans and compare benefits, suggests Clay Mowers of Mowers Financial Services in Fort Collins. "Then, determine what your needs are."

In most cases, COBRA will offer the greatest value for the amount of coverage you receive. But in certain cases, the COBRA plan may offer more benefits than you need, Mowers says.

If you can be added to your spouse's plan, that's another option worth considering, as are individual health insurance plans. But if you have a pre-existing condition, you may be denied coverage or charged a much higher premium. A pre-existing condition can range from having taken a prescription drug within the past year to receiving ongoing treatment. Each insurance company defines what it considers a pre-existing condition.

Families who can't afford premiums under COBRA can look into the Children's Health Plan for their kids. Low-income individuals and families may also be eligible for Medicaid. Another option may be lower-cost catastrophic insurance to tide a person over until insurance is again available through an employer. 

The Colorado Uninsurable Health Insurance Plan offers major-medical health insurance to Coloradans who've been denied access to affordable health insurance because of pre-existing conditions. However, this option can be quite expensive.

"Where health issues are involved, COBRA is likely the best option," says Mowers. 

If an employer has fewer than 20 employees, Colorado Continuation Insurance works like COBRA to extend the same health insurance coverage to departing employees. In either case, consult your employer's health plan administrator for more information and to complete an application form.