Here is information we received over the weekend regarding the status of the American Recovery and Reinvestment Act and how it affects Ohio individual health insruance. This legislation is expected to be signed into law on Tuesday, February 17. This blog will continue to update you on the progress of this bill as further changes can occur up to the time it is signed.
Health Insurance Reform
Both the House and Senate have completed action on the “American Recovery and Reinvestment Act (ARRA).” The House approved the bill by a vote of 246 to 183 (1 present) that fell on party lines. The Senate adopted the measure by a vote of 60 to 38.
The final version of ARRA provides for a 65 percent COBRA premium subsidy for a maximum period of nine months. The premium subsidy applies only with respect to involuntary terminations that occur on or after September 1, 2008, and before January 1,2010.
Please note that this subsidy would be ONLY for “INVOLUNTARY TERMINATIONS” and ONLY applies to former employees of companies with more than 20 employees and is for a maximum of 9 months.
One should be concerned that if a health condition occurs during that time frame, future insurability could be compromised. One should seriously consider the cost / benefit logic of remaining on an employer sponsored COBRA plan. In these uncertain times, if an employer closes their doors, the COBRA plan could be discontinued (no health plan, no COBRA). In many cases, an individual policy could be comparable in cost to COBRA subsidized plan. However, the insured OWNS their Ohio individual health insurance policy, and as long as the premium is paid, the coverage continues (even if the insured becomes uninsurable).
To shop for Ohio individual health insurance plans, which are typically up to 50% less than COBRA, click here.