Lost group health plan - What now?

As long as your job loss is a qualified event, which it most likely is, you would be entitled to the same group health plan through COBRA (Consolidated Omnibus Budget Reconciliation Act) or state continuation. Group health plans for employers with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year are subject to COBRA. Group health plans with 19 or fewer employees would be subject to state continuation.

1. Now I have some good news and some not so good news.  First the good news, relax you can keep your health benefits. The bad news is that it can be very expensive. The reason is that you are now responsible for the entire portion of your health plans premium not just the part you use to pay. The employer can also add a 2% increase for administration. This is very difficult to pay for most people.

2. The plan administrator must provide notice to individual employees of their right to elect COBRA coverage within 14 days after the administrator has received notice from the employer.

3. You must respond to this notice and elect COBRA coverage by the 60th day after the written notice is sent or the day health care coverage ceased, whichever is later.  Otherwise, you will lose all rights to COBRA benefits.

I would try to get an Individual or family policy first, this could save you a lot of money. To get a free competitive quote go to www.focusinsgroup.com. You can pick up to 4 plans at a time and do a side by side comparison of the plans your interested in. You can also download the Illinois Health Insurance Buyers Guide to help you pick the policy which will help your circumstances the best.

If you have pre-existing health conditions and you do not qualify for an individual policy you will most likely have to stay on COBRA. The length of time you are allowed to stay on COBRA can vary. It is typically 18 months.

Recommendations: If you have pre-existing conditions but your family does not, try to put the rest of your family on an individual policy. If you are not sure which way is the best and most cost effective way give me (Randy Gillespie) a call at Focus Insurance Group,Inc. Office number 217-645-3075 I’d be glad to help.

Tags: Illinois health insurance

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