5 Ways to Cope Without COBRA Health Insurance Subsidy

Published: Fri 14 May 2010

Wendy Blair

The 15-month subsidy of COBRA health insurance premiums will end in June 2010 for policyholders that started receiving it in March of 2009. Recently, eHealthInsurance released seven pointers for policyholders facing the COBRA subsidy's end. The subsidy decreased the premiums individuals had to pay for COBRA coverage by 65 percent during the 15-month period.

The biggest single group of individuals for whom the subsidy will end may be the group that loses benefits in June. Anyone who qualified for the subsidy from Sept. 2008 and March 2009-a period of six months during which unemployment skyrocketed from 6.2 percent to 8.4 percent-will hit the end of the COBRA subsidy in June. In 2009, approximately seven million Americans and their dependents were expected to take advantage of the COBRA health insurance subsidy, according to the Congressional Budget Office.

Coping without the COBRA Subsidy

The tips that follow outline public programs, cost-cutting advice, and private health insurance to assist individuals in retaining their medical coverage in some form or to minimize their medical costs.

1. Start your own business to receive a tax break on medical insurance. If you do some consulting work or operate a small business on the side, you might be able to qualify for a small business health insurance plan as long as you have at least one or two employees. The specifics will depend on your state's laws.


2. Individual health insurance market reforms. Because of the changes made to the individual health insurance market by the health care reform law, fairly healthy people can easily find reasonable, quality individual medical plans.


3. Consider a HIPAA plan. The HIPAA law guarantees coverage to individuals who meet specific criteria for special medical insurance plans. If you can demonstrate that you have maintained creditable medical coverage until recently, with gaps no longer than 63 days, you may qualify for HIPAA health insurance.


4. Insuring children is easier. The health care overhaul also prohibits health insurers from denying an underage child's application for coverage on the basis of preexisting conditions. If your child currently has COBRA coverage but cannot qualify for health insurance in the individual market, think about covering him/her temporarily with a short-term health insurance policy.


5. Remember that the price of care is flexible. Prices for identical healthcare services, treatments, and tests can differ by thousands of dollars. Check the Healthcare Blue Book's fair market value for the treatment or service before you make your purchase. If your provider wants to charge you more, request a discount.

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