CHICAGO--(BUSINESS WIRE)--Now that the economic stimulus legislation proposed by President Obama was approved in both Houses of Congress, the nation's unemployed stand to get a substantial federal subsidy for COBRA health insurance premiums – the government will pay as much as 50 percent of COBRA premiums for up to one year. What most don't know is that even after the subsidy, many Americans can save more money and get better coverage through individual health insurance options found outside of COBRA. But for now, the stimulus bill is yet to be finalized and millions of newly uninsured workers are in need of immediate health insurance solutions.
By using Internet resources such as GoHealthInsurance.com to compare different carriers and plans, consumers can find alternatives to COBRA and may end up with more affordable and flexible health insurance coverage. GoHealthInsurance.com also links consumers with knowledgeable brokers in their area who can help them weigh options and make the best decisions for their particular situations.
Alternatives to COBRA
Under the federal law COBRA (Consolidated Omnibus Reconciliation Act), those who have lost their employer health plan can continue coverage for a temporary period of time. At first glance, COBRA seems like a viable solution for the newly unemployed — especially those with pre-existing conditions.
But the major downside to COBRA coverage is that employees are responsible for paying their entire group health premium — and most don't realize how much an employer actually pays for health insurance per employee. For just a single worker, COBRA coverage can easily cost $400 per month. For families, the full monthly premium can reach well beyond $1,000.
Even with the substantial subsidy proposed by the Obama Administration's stimulus package, the premiums for COBRA may still exceed the cost of private individual health insurance. It's also important to understand that COBRA is a temporary solution and is not available to millions of currently employed workers without group-based health insurance coverage.
Checking Out Options
The fastest way to find viable options for individual insurance is to go online to a site such as GoHealthInsurance.com, which allows the comparison of products from multiple carriers quickly and easily. Because 95 percent of online insurance shoppers want advice from an expert on this important decision, GoHealthInsurance.com can connect shoppers with trusted advisors – brokers and agents in their area – while they are online to get this important advice.
In addition, shoppers can explore other non-traditional options such as:
These options won't lessen the severity of a job loss, but they can help lessen the impact. The key is that consumers who face unemployment must act quickly to ensure that any break in their health insurance coverage doesn't last for more than two months.
Human resource managers at companies that are experiencing cutbacks may also want to inform their employees who are being laid off about this option, which can help unemployed workers keep their health insurance coverage at a more affordable cost.
“If you're looking for a better alternative to COBRA or you need coverage altogether, consider an individual health insurance plan,” said Paul Kaczmarczyk, an independent agent based in Chicago. “It's easy to search for an individual plan. The online service at GoHealthInsurance.com can help you find a quality, affordable individual health plan based on your unique needs. If you need further assistance, an independent agent or broker can walk you through the process, find the plan that best meets your needs and even help you fill out forms online.”
About GoHealth Insurance
GoHealthInsurance.com makes buying health insurance simple. GoHealth Insurance explains health coverage options in plain English, provides free health insurance quotes at www.GoHealthInsurance.com, connects shoppers with local agents, and helps consumers choose plans that meet their health and budget needs.
Norvax Inc. is a leading developer of Web-based sales and customer communication tools that connect and help consumers, insurance brokers, agents and carriers transact health insurance business more efficiently. From tools for building lead-generating Websites to health insurance quote engines and email autoresponders that can automatically include updated health insurance quotes, Norvax’s health insurance technology lets agents increase sales, cut administrative time and reduce expenses by initiating customer contact faster and automatically maintaining around-the-clock communications with prospects. Founded in 2001, Norvax was named among the Top 20 fastest-growing software companies in the U.S. in both 2007 and 2008 by Inc. magazine. Norvax is privately held and headquartered in Chicago.