For California health insurance shoppers the first part of a scenario that has been playing out around the state during this economic downturn is job loss. The second part of the equation has been many California residents saddled with the cost of paying for COBRA continuation coverage. At present, there are two possible scenarios we’d like to deal with in this article:

1. Individuals who were eligible for COBRA coverage because of their own or a family member’s involuntary termination from employment that occurred during the period from September 1, 2008 through May 31, 2010 and who elected COBRA may have been eligible to pay a reduced premium. Eligible individuals pay only 35% of the premium for COBRA coverage under their plans for up to 15 months.
2. It is an unfortunate reality that the economy is still struggling. Companies are still shedding jobs and if the summer of 2010 saw your job eliminated or a reduction in hours occurred after June 1^st, resulting in your eligibility for COBRA continuation coverage, the 15 month COBRA subsidy is no longer.

If you are presently eligible for and receiving the 65% COBRA subsidy, you’re well aware how vital this subsidy is to a household budget impacted by the specter of unemployment. Understanding the limitations placed on your finances and discretionary spending, you have probably already completed a thorough review of your personal finances in the wake of separation from your employment. It’s possible, however, that review didn’t include an analysis of your California health insurance strategy, but maybe it should have? There’s one great reason to review the COBRA coverage you have now – even if you have the 65% subsidy to go along with it: It’s just possible that you’re still overpaying for the health coverage that is uniquely right for you. Your employee health plan may be more benefit ‘rich’ than the plans you’ll find on the individual market. More benefits mean higher premiums and even subsidized premiums may still be too rich for a monthly budget impacted by the lack of a regular payroll check.

Let’s say you’re a bachelor, healthy with no pre-existing conditions that could raise your premium above the standard rate and beyond the use of your preventive care services you don’t even know what the inside of a doctor’s office looks like. Your currently subsidized group health plan coverage may have an awesome collection of benefits – like maternity coverage! – but all  these benefits may be costing you money:  You may be paying more for your subsidized COBRA coverage than you actually would if you owned an individual California health insurance plan with benefits that are uniquely right for you!

If this summer included an incident of job loss or a reduction in hours resulting in your eligibility for COBRA continuation coverage you have our condolences and our sincere concern for you and your family’s emotional wellbeing. We understand that job loss and the period that follows can be an emotionally gut wrenching time and also a time where it can be difficult to make sound long term financial decisions in the midst of the fog of emotion. If you chose to continue receiving health coverage via your previous employer’s group plan and COBRA continuation coverage, you have given yourself a justifiably necessary period of adjustment to this new situation, some breathing room that will be necessary to helping you make sound strategic decisions about your health care coverage needs moving forward.

First and foremost – with COBRA – you have health insurance. That is absolutely necessary and vital and helps to ensure that in the midst of everything else, a serious illness or injury will not have a devastating effect on your family’s finances. Secondly: Those without subsidized COBRA – while appreciating the fact that they have health coverage – also are seeing just how expensive their group health plan is when it isn’t being paid for or subsidized in large part by your previous employer. You are now responsible for 100% of a premium that was once the responsibility – in whole or in part – of your employer.

Our best advice: Don’t let a gap in your health coverage occur. Even if you need to pay the higher, unsubsidized, cost of your COBRA coverage as you’re shopping for a privately-owned family health plan, don’t allow a gap in your health coverage to wreck havoc with your financial future. It is always best to make certain you and/or your family has made it through the medical underwriting process and have a new plan in hand before severing your ties with your previous health coverage.

Your attachment to your COBRA coverage may also be related to the presence of a pre-existing condition in your medical history. Here again – keep the coverage you have in place – but also use the experience and expertise of a Vitality California health insurance professional: Our client services are always free and we can provide insight that can help you sort out your options moving forward.

You know, it occurs to us that in reviewing the above, this article is about having options and maintaining hope in a situation you might feel lacks both. Affordable options do, in fact, exist. We understand that this is a tough situation to find yourself in. It seems like there are a lot of things coming at you all at once. Here’s what we can do to help:

• Our California health insurance quotes and all client services are always 100% free.
• We provide our always caring, careful and considerate client consultations at a time and place that is most convenient to your schedule.
• We bring innovation and creativity to the process of finding a health coverage strategy that is uniquely right for you and your family. We are an independent authorized agency representing health plans from an array of leading health insurance companies operating here in the state. Combining innovation and the widest range of health plans to choose from delivers buying power and savings to the California health insurance consumer.

Out of this present situation can also spring the hopes for better tomorrows. We’ve seen many successful small businesses launched in tough economic times and your career path may be headed in the direction of being an independent businessperson and a California small business owner. If that’s the case, then keep us in mind too: We also provide winning strategies for small group health insurance California business owners can depend on and it’s interesting to note that small group health plans offer certain distinct advantages to Californians in search of both a next chapter in their business careers and affordable health coverage! Contact Vitality to learn more!