Dear Liz: Is affordable healthcare insurance an oxymoron? I am nearing the end of my 18 months of COBRA continuation coverage for health insurance. I benefited from the federal government’s 65% premium subsidy but that has ended, so I’m faced with paying $991 a month, which I can’t afford. The individual policies that I have looked at will insure me, but not my wife, who has a pre-existing condition, or my daughter, who is a full-time student but over the age limit. I’m not too worried about my daughter, who is eligible for a health plan through her college. It is my understanding that I will receive a “certificate of creditable coverage” upon canceling the COBRA policy and I have only 63 days to purchase either an individual policy and/or HIPAA coverage. I know I’m not the only one with this dilemma. I’m honestly considering running with no coverage. Not too smart? Opinions? Suggestions?
Answer: Going bare really isn’t smart, since a single accident or illness can bankrupt you. And you typically have to exhaust your COBRA coverage before you (or your wife) can be eligible for continuing coverage under HIPAA, the Health Insurance Portability and Accountability Act, which requires insurers to cover people even if they have pre-existing conditions. Canceling your COBRA coverage prematurely could make it tough or impossible to find replacement coverage.
Your best option (other than finding a job with health insurance benefits) may be to choose a high-deductible policy. You’ll have to pay for most healthcare out of pocket, but you’re protected from catastrophically high expenses should you or your wife become injured or sick. You might want to seek out an experienced insurance agent who is familiar with plans in your state for more advice.
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