Saving Money

Cut Healthcare Costs: Part II

Consider COBRA: Generally, if you're employed at a company with 20 or more workers and you:

• Leave your job
• Your hours are reduced (making you ineligible for employer-paid insurance)
• You're terminated other than for gross misconduct
• You get divorced and lose coverage under your spouse's plan

You can likely elect to continue your insurance coverage under COBRA if the above situations apply to you.You'll have to pay the full amount of the premium plus an administrative fee of 2%.Without your employer kicking in, that can be expensive! But you may want to hang onto it while you find other coverage.

You generally have up to 60 days after losing your employer coverage to elect to be covered under COBRA, and coverage is then retroactive. But don't wait that long to either sign up or find other coverage. Remember, if you go 63 days without coverage, you lose important rights under HIPAA. Get information about COBRA as soon as you leave your job so you can make an informed decision.

If needed, you can elect to keep coverage only for your spouse and other dependents who were covered under your employer-sponsored plan. Let's say, for example, your husband has a health problem but you and your child are healthy.The two of you may look for a cheaper individual plan while electing to continue COBRA coverage for your husband who would have a hard time finding health insurance.

Get detailed information about COBRA coverage at insure.com.

Try the Blues: Blue Cross/Blue Shield members are large insurance companies, and may offer programs for consumers who can't get insurance elsewhere. Visit their main website www.bluecares.com for information on a Blue Cross/Blue Shield program in your area.

Insure for the Worst: Major medical or "catastrophic" insurance features high deductibles and covers expenses like a stay in the hospital, surgery, intensive care, diagnostic X-ray, and lab tests. If you can't afford the kind of coverage you'd like, it may make sense to consider insuring for the worst - a serious illness or accident. Major medical policies often offer high deductibles of $500 to $2000 or more.That means the plan pays no benefits until you've reached the deductible amount. Still, it could be a lifesaver; helping your family get the medical care it needs if the worst should happen.

Ask Your State for Help: Some 29 states fund "risk pools," or high-risk health insurance plans.These plans are generally available for consumers who cannot obtain health insurance because of pre-existing medical conditions.To see whether a risk pool is available in your state, contact your state insurance department.

Join the Club: Check with trade or professional associations, alumni associations, or local Chambers of Commerce, all of which may offer health insurance programs for their members. But just because an association endorses a program, doesn't mean it's good. Some large associations have been duped by fraudulent health care programs.