Saturday, November 28, 2009

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On Health and Money Blog -- U.S. News & World Report

Unemployed? 4 Ways to Avoid COBRA's Bite

January 09, 2009 04:58 PM ET | Michelle Andrews | Permanent Link | Print

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Cobra for Children (no longer students)

My company recently closed a Virginia office and moved everything to an another office in Indiana. My son (no longer a studenet with medical problems...21 years old) had Cobra from the company at a very resonable rate of $238 per month. Now that the company has consolidated with another branch in another state the Cobra amount is nearly $500 per month. No help for this type of situation is offer by our new administration. Of course, I am still paying this becasue he cannot be uninsured. When Cobra runs out he will have to go the a Free Clinic for help. This is NOT the right answer to our health care problems....

Cobra Subsidy for Carryover coverage from prior employer

I worked for a company in Virginia that had health insurance. I left that company in 2008 for another firm in California that did not have health insurance. I signed up and paid (and continue to pay for COBRA coverage) through the Virginia firm at a cost of $969.50/month. I was recently laid off at the California firm but am told that I am not eligible for COBRA subsidy. So even though I (and my wife) are laid off, we get no help with COBRA costs because I left the Va. firm befor the Sept. 8th. enactment date. This seems very unfair and shows the subsidy does not help the thousands of family's that had COBRA coverage before Sept. 8th. irrgardless what happened after that date. This law only helps those employed and fired after 9/8/2008. Since COBRA is available for 18 months I'm sure there are 1000's of families not being helped.

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About On Health and Money

Senior Writer Michelle Andrews reports on how to be a smart health consumer and get the best care for your money. Write to her at onhealthmoney@usnews.com.

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