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New COBRA Primer Helps Unemployed Californians Understand Their Health Care Coverage Options

Posted on: Tuesday, 1 April 2008, 12:00 CDT

In response to California's recent economic downturn and employees' concerns about holding on to health coverage if they're laid off, the Foundation for Health Coverage Education (FHCE) has published a new booklet, "COBRA: Your Ultimate Health Coverage Guide," which explains how COBRA works and provides six alternative options for continued insurance coverage.

"There are a lot of people who don't understand their COBRA Options," said Phil Lebherz, FHCE founder and executive director. "For instance, if the laid-off employee doesn't opt for COBRA coverage, any member of his family with a pre-existing medical condition can still use it. Or, if there is a divorce, by law, the divorced spouse of the employee can still secure the spouse's COBRA coverage should the spouse become unemployed."

"We're very pleased to be able to reach out to Californians with this effort to help them get critical information and ultimately greater access to California's health care system," said Mark Morgan, Health Net, Inc.'s chief commercial officer in charge of products for the individual market. Health Net provided the funding to the foundation to make the guide possible.

COBRA, so named from the Consolidated Omnibus Budget Reconciliation Act, requires businesses with 20 or more employees to provide continuation of group health coverage that otherwise might be terminated.

The ten-page COBRA guide will be distributed statewide to human resource professionals and insurance industry experts. It is the first in a series of lifestyle health insurance coverage booklets to help people in need of health coverage during different life stages so they may research and understand their options. Combined with the service capabilities of FHCE's 24/7 live U.S. Uninsured Help Line (1-800-234-1317) and the Internet support provided by the foundation's website, www.coverageforall.org, tools like the "COBRA: Your Ultimate Health Coverage Guide" support the FHCE goals to educate the uninsured about coverage options they may not know they're eligible for and ease the often bureaucratic application process.

The guide explains in clear, simple language who qualifies for COBRA, the costs, how to apply and how long COBRA coverage lasts. Those who qualify include:

 --  Employees, along with their spouses, who were voluntarily or     involuntarily terminated for reasons other than gross misconduct or who     have had their hours reduced --  Spouses of covered employees who become entitled to Medicare --  Divorced or legally separated spouses of covered employees --  Spouses of a covered employee who passed away --  Dependent children who lost their 'dependent child status' under the     plan rules      

For those whose group coverage is ending without a COBRA option, the booklet explains six alternatives, including:

 --  HIPPA (Health Insurance Portability and Accountability Act) and HIPP     (Health Insurance Premium Payment) programs --  MRMIP (Major Risk Medical Insurance Program) --  Moderate/Low Income Household Options such as Medi-Cal, Access for     Infants and Mothers (AIM), County Programs and Healthy Families --  Medicare for those over age 65, younger people with disabilities and     people with End Stage Renal Disease --  Individual insurance --  Small group "guarantee coverage"

Health Net, Inc. is among the nation's largest publicly traded managed health care companies. Health Net's mission is to help people be healthy, secure and comfortable.

The Foundation for Health Coverage Education (FHCE) is a non-profit 501 (c) 3 public organization based in San Jose, California. For more information, log on to www.coverageforall.org or call 1-800-234-1317.

 Media Contacts: Marilyn Haese Bobbi Rubinstein Haese & Wood (310) 556-9612 Email Contact

SOURCE: Foundation for Health Coverage Education

Source: MARKET WIRE

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