Health Insurance choices costly

By ERIC RUTH

The News Journal



Thousands of MBNA workers may soon find themselves out of a job, but the company says they will still get their health coverage -- until their severance packages run out.



After that, laid-off workers who still have not found new jobs must face the prospect of paying for temporary insurance policies, and dealing with a maze of requirements and qualifications that control eligibility. They may soon find that even relatively minor health problems limit their chances to buy new policies, and find themselves paying far more for insurance at a time of financial uncertainty.



Here's a look at the options in Delaware for laid-off workers without health insurance coverage, as spelled out by the Georgetown University Health Policy Institute, the state and other insurance information resources:



COBRA



Large employers with group health plans are required by law to offer employees the opportunity to temporarily continue their group health care coverage. Known as a COBRA policy, it can help when you are between jobs or waiting for a new health plan to cover your pre-existing condition.



After you are laid off, your group health plan has 14 days to notify you about how to get coverage, and you and your family members have 60 days to enroll. The coverage will be retroactive to the time of the layoff, but usually lasts no more than 18 months and is not renewable.



COBRAs offer the benefit of retaining the coverage you had before you lost your job. There are limits on what you can be charged for this coverage, but be prepared for steeper insurance bills. You will have to pay premiums dating to the time of the layoff, and you will be responsible for paying the employer and employee share of the premium, plus a 2 percent fee.



HIPAA coverage



If your COBRA expires, you may be eligible for HIPAA coverage (named after the Health Insurance Portability and Accountability Act). Once you are HIPAA eligible, insurers cannot refuse individual coverage because of medical conditions -- they are obligated to offer at least two policies. The insurers are permitted to charge significantly higher premiums, however, due to health status, age or other factors.



Private individual insurance

In Delaware, you have a limited right to buy private individual health insurance, depending on your health status. Insurers are allowed to refuse or limit coverage based on health conditions, and buyers should be careful to compare differences in coverage from policy to policy before buying. Insurers are required to provide written descriptions of their health plan products.



Remember: Once you have coverage, it cannot be canceled just because you get sick, as long as you pay the premiums.



Interim policies



Insurers also offer limited-time policies, considered useful for short-term breaks in health coverage. These policies usually last two or six months. They are not guaranteed renewable, however, and consumers may end up paying a higher premium for the next short-term policy.



Professional organizations



If you belong to a trade or professional organization, check whether it offers policies to members.



Free or subsidized coverage



If your income falls below a certain level, you may qualify for Medicare health coverage. Contact the state Division of Social Services at 255-9500 or (800) 372-2022 for information.



If your children are 18 or younger, do not have health insurance and meet other qualifications, you may be able to buy low-cost insurance for them through the Delaware Healthy Children Program. Call (800) 996-9969.