Options for Health Coverage Limited for Newly Unemployed, Washington Post Reports

The Dec. 18 Washington Post's health section examines the health insurance coverage options available to the recently uninsured, who "face a tough marketplace." Policies available to the uninsured "often share several features: steep premiums, exclusions of coverage for pre-existing medical conditions or certain kinds of treatment, high deductibles and numerous caveats." A study released earlier this month by Families USA found that more than 529,000 Americans lost their health coverage from September to November, most of them because of layoffs and the subsequent loss of employer-sponsored coverage. Those without coverage can either "gambl[e] on continued good health" -- a "high-risk strategy" -- or use two "basic options" to retain health insurance. The first is COBRA, the 1986 Consolidated Omnibus Budget Reconciliation Act, which allows most former employees to keep their employer-sponsored coverage for up to 18 months by paying 102% of the premiums. The second is to purchase an individual health care policy. Both choices have their downsides, as the cost of COBRA premiums can exceed an individual's unemployment benefits, while those with pre-existing medical conditions may have difficultly finding an affordable individual policy. "It's a crazy quilt," Ron Pollack, executive director of Families USA, said of the various options available to the recently uninsured, adding, "The so-called safety net has more holes than webbing. It's very scary" (Simmons, Washington Post, 12/18).