Hawaiian Unemployed People Can’t Afford Health Insurance

Health insurance has a become a big issue as more and more people are laid off due to the financial crisis, their options being either seeking new individual health insurance or using the COBRA plan, which was created especially for laid-off workers.

The problem with COBRA is that it is largely unaffordable, taking up more than three-quarters of a worker's government unemployment compensation. Currently, the unemployment rate is 7.2%, which is the highest the US has seen in 16 years. This means that millions and millions of people are jobless, thus looking for health insurance. A laid off worker with health problems is very unlikely to find individual health insurance, as companies are afraid to cover them.

The situation in Hawaii is even worse, even though the COBRA plan is the cheapest in Hawaii, most of the unemployed people can’t afford paying for health insurance. This is very hard, as one is constantly thinking and wondering what is to do if he gets seriously sick.

The large majority of Americans get their health insurance from their work place, those who are jobless are thus in a big predicament. About 46 million people have no health insurance and the rest are covered by government insurance. Surveys show about 18 to 26 percent of people eligible for COBRA use the program in any given year, meaning that a low percentage of the people without a job live without a health insurance.

The health care system needs to be reformed, one way or another, and this should be the number one priority.

Health Insurance If You Lose Your Job

(CBS) When people lose their jobs, they also lose their health insurance. Finding alternative insurance can be intimidating, and expensive. But in this column, Early Show financial adviser Ray Martin goes through some of the available options.

For starters, he says, do NOT go without insurance, assuming it's going to be prohibitively expensive. The No. 1 reason individuals file for bankruptcy is medical bills that can't be paid thanks to a lack of insurance. But, he stresses, you do have some choices.


According to recent statistics, about 46 million Americans are going without health insurance coverage. With the souring economy and rising unemployment, the number of folks losing job-related health insurance benefits is set to rise significantly. And with more folks looking for jobs, finding a job will take longer, which means more displaced workers can go without health insurance for longer periods of time.

Unfortunately, there is no universal health insurance plan for folks who need temporary health insurance coverage due to loss of coverage when they are between jobs or no longer qualify as a dependent under a spouses or parents plan. However, many insurance companies are developing more individual and "gap" plans in an effort to make some options more affordable to individuals, due to a growing market demand. Sorting through the available options and finding affordable short-term health insurance can be challenging, but it's not impossible.

Here's what to look for:

COBRA Continuation of Coverage

Under a Federal law called COBRA (Consolidated Omnibus Budget Reconciliation Act), displaced workers are provided the right to continue coverage under their employers' group plans after they change or lose jobs. Continuation of coverage can also apply to children who no longer qualify as covered dependents because they are no longer full-time students. This option is available to employees of companies with group health plans that cover 20 or more workers. Some employers with other health plans (such as self-insured plans) may not be required to provide COBRA continuation coverage. The cost of health coverage under COBRA for displaced workers is usually more expensive than health coverage for active employees, since, usually, the employer pays a part of the premium for active employees, while displaced workers are required to pay the entire premium themselves. Since it is the full cost for the coverage, it can be expensive: On average, the monthly premium for an individual policy in 2008 was $392, and for a family plan, about $1,056 a month, according to a recent Kaiser/HRET survey. But typically, that is still less expensive than individual health coverage with the same features and benefits.

Coverage under COBRA can be continued for up to 18 months, and up to 36 months when loss of coverage is due to divorce, disability, etc. When electing COBRA coverage, you must be sure to do so within 60 days of your “qualifying event” (such as loss of your job, divorce, etc.); after that time, the insurance company can decline your eligibility. Once you select COBRA, your coverage is effective with no gaps, so your eligible medical claims during that period of time should all be covered. Because this is the same coverage that the worker had before losing his or her job, the same benefits and features are available, and there are typically no restrictions for preexisting conditions. You can also discontinue participating at any time after permanent coverage is found.

But continuation of health insurance under COBRA is not always available for workers of companies that go out of business: When a company shuts its doors and also terminates its health insurance plan, usually there is no COBRA coverage available. If, however, there is another plan offered by the company, you may be covered under that plan.

Short-Term Medical Insurance

Short-term medical insurance can provide coverage for a limited period of time, and may be a good solution for those between jobs or waiting for other health insurance to start. This form of coverage is offered by a select group of insurance companies and features coverage from one-to-12 months. This can be a good option for those between jobs, when COBRA is not available and you do not have significant pre-existing conditions. For example, the Celtic Insurance Company offers a short-term medical plan for a 45 year-old male that can cost as little as $74 a month. Of course, the cost of this coverage will depend on your age, other health related factors, and the deductible you select (some products feature a selection of deductibles from $250 to $2,500). After the deductible is paid, covered individuals typically pay 20 percent of covered expenses up to an out-of-pocket limit, and then all covered expenses are covered 100 percent up to $2 million. Another provider that offers short-term medical insurance is Golden Rule (a UnitedHealthOne Company). Also, check out www.ehealthcobra.com, a Web site developed by eHealthInsurance that offers quotes and side-by-side comparisons of several short-term and high-deductible medical plans for individuals and families.

Catastrophic Health Insurance

As the name implies, these policies are primarily designed to cover major emergency medical expenses. The cost is relatively low, because insured people must first satisfy a high deductible, ranging from $500 up to $15,000, depending on the plan purchased. These policies are not intended to pay for routine doctor office visits or trips to the emergency room for the flu, nor for preventative care, maternity care or mental health care. However, most catastrophic plans cover hospital stays, X-rays, and surgical expenses. Think of this as affordable medical coverage for the worst that can happen, which primarily provides coverage so your other assets do not get wiped out from the high cost of a true medical emergency. Folks who get this coverage will need to be prepared to pay a deductible if they incur a serious illness or accident. If you have a pre-existing condition such as heart disease, cancer or diabetes, you are generally not eligible for this type of coverage. There are several Web sites that will compare catastrophic plans in your area and provide quotes for you, including gohealthinsurance.com and medhealthinsurance.com.

Association Coverage

Many trade, professional or other associations offer health insurance to their members. If you belong to any groups or associations, call their membership services to find out if they offer this coverage. There can occasionally be a small, additional administrative fee such as two percent of the annual premium that the Association may charge you, but this is still a good way to obtain a group rate for coverage.

Non-Group Coverage

Many health insurance companies offer individual health insurance coverage. This can be very expensive and may not available in your state. Often, application requirements will apply, and preexisting conditions will be excluded from covered health and medical conditions. Some states mandate a “high-risk pool” that guarantees by law that they accept those who apply, under certain conditions. Check with your state's insurance department for more information.

Local Clinics

Some uninsured adults turn to local clinics for low-cost or free medical care for things such as routine visits or check-ups. But this is not a viable alternative for a major illness or accident, as hospitalization is not provided. If you decide to forgo health insurance, it does not mean that you can't still seek care from your family physician or local doctors; you will just need to pay as you go. And don't be afraid to negotiate those fees. This is a much more affordable way to seek care then going to an emergency room, where the cost can be more than 10 times higher.

Medicaid

This is a joint federal-state health insurance program for individuals who meet near poverty-level income and asset qualifications. States usually provide Medicaid for individuals who receive federally-funded cash assistance payments, such as SSI. The set poverty-levels can vary by state so, for more information about Medicaid, contact your state's Medicaid agency, social service or welfare office.

Hartford Financial, Lincoln National Receive Thrift Charters

WASHINGTON -(Dow Jones)- Hartford Financial Services Group (HIG) and Lincoln National Corp. (LNC) were granted thrift charters Friday, clearing a hurdle for their insurance affiliates to receive capital infusions under the Troubled Asset Relief Program.

Hartford Financial has a number of life-insurance affiliates, while Lincoln National is the parent of Lincoln National Life Insurance Co.

The Office of Thrift Supervision announced the approval of the thrift charters for Hartford and Lincoln on its Web site.

The life-insurance industry has been lobbying to receive federal rescue aid under TARP, as insurers' investment portfolios have been badly battered by the financial turmoil.

The Treasury told the industry that only companies with a federal regulator are eligible for the program. Some insurers, such as MetLife (MET), have long held thrift charters. The industry, however, is almost exclusively regulated at the state level.

ASU study: Fewer Alabamians with health insurance

MONTGOMERY, AL (WSFA) - As the economy dips further into recession a new study shows that Alabamians are losing their health insurance.

Alabama State University's Center for Leadership and Public Policy says a recent survey finds that fewer Alabamians had health insurance in 2008 than in 2007.

The study, which surveyed 403 random Alabama residents over a six-week period in late 2008, found that 80% of households had insurance in 2008, down from 83% the previous year.

Those who didn't have insurance said the main reasons were 1.) no employment or 2.) they just couldn't afford it.

ASU's study reveals that of those that were insured 50% of households said their employer was the source of their insurance while another 25% said insurance came through a family member's employer. The remaining 25% said they purchased their own insurance.

The drop in coverage is affecting those who are younger and have smaller incomes. ASU's study found that 56% of respondents with no health insurance were under the age of 41 and had incomes of less than $25,000.

The study included a breakdown of uninsured Alabamians by race. Of those who said they were not insured 48% were Caucasian and 42% were African-American.

ASU says it has a confidence level in the study of 95% and a confidence intertal of plus or minus 4.9%.

Seattle - In the United States there are over 40 million citizens that includes 10 million children who are without health insurance. This is going to

Seattle - In the United States there are over 40 million citizens that includes 10 million children who are without health insurance. This is going to be one of the biggest troubles that soon to be official President Barrack Obama is going to have to handle when he takes office in a few weeks.

Not only do so many people in our country not have health insurance, but those who do currently have it may soon not be able to afford it as insurance premiums are continuing to rise. The fact is that the way things are with health care presently may continue to go downhill and get worse before anyone sees it get better due to the state of our economy.

President elect Obama has reached out to the citizens of our country regarding the health care system and thousands answered that call. Obama asked citizens to come together in groups and discuss what they felt needed to be done to improve the health care system in our country and to come up with some possible solutions. Obama’s transition team set up Sunday as the official date to gather all information discussed and any videos that were made and have them uploaded to their site for review.

In Ohio alone, more than 120 meetings were held and the transition team has received more then 600 reports from groups since the uploading began.

Jen Psaki, a transition team spokesperson has said that they have received an overwhelming outcry from our citizens saying that there is a need for change no matter who the person is. There has been many stories received of very sad situations regarding those who cannot afford health care.

This is not the first time that citizen input has been looked for, however last time there was hardly any medical professionals involved. This time around the medical professionals made sure to give their input. They are concerned with the fact that medical students are choosing to go to the higher paying specialties in their education because nowadays it seems that those who are in general practice are not as valued. Due to this decision rates will continue to rise in health care costs.

There are many reasons that health care is so expensive and why people cannot afford it. There are also many decisions that need to be made by President elect Obama and his transition team along with Tom Daschle, the Secretary of the Department of Health and Human Services. Let us hope and pray that the right decisions are made and the health care system improves quickly for all.

Hawaii Auto Insurance Fraud Investigation Unit Convictions Increase by 61 Percent in 2008

HONOLULU – The Insurance Fraud Investigation Unit of the State Department of Commerce and Consumer Affairs (Fraud Unit) experienced a 61 percent increase in criminal convictions for motor vehicle insurance fraud in 2008 over the previous year.

Fraud Unit convictions increased from 18 in 2006 to 34 in 2007 and 55 in 2008. Convictions for felony charges may result in a prison sentence of up to 10 years and/or a fine of $25,000.

Examples of insurance fraud cases in 2008 include charges involving a Big Island resident, a body shop owner, and a career criminal.

Beverly Medeiros, an Educational Assistant in Pahoa, Hawai‘i was investigated for five separate cases. Medeiros alleged that she was unable to work due to injuries from an auto accident. Medeiros created fictitious employers and utilized a post office box address to intercept all correspondence. Medeiros defrauded three different insurance companies. In January 2008, Medeiros was sentenced to 30 days in jail. Medeiros was also ordered to pay restitution totaling more than $103,000 along with court fees in the amount of $1380.00.

In a separate case, body shop owner Bryan Hong pleaded no contest and was granted a deferral for defrauding an insurance company. In October 2008, Mr. Hong was ordered to pay nearly $4,000 in restitution for work that the company paid for but was not performed. The work consisted of safety and structural repairs to a customer of O’Sung Auto Body. Mr. Hong was further ordered to pay a $1,500 fine and complete a five-year probationary period.

In a typical case of insurance fraud, Noelani Delizo obtained insurance coverage after she was involved in a three-car accident. Delizo then reported a false date of accident in an attempt to have her insurance company pay for the damages. In November 2008, the court ordered Delizo to serve a five-year prison term for attempting to obtain fraudulent insurance benefits. She was also ordered to pay $500 in restitution to the accident victims.

Insurance Fraud affects everyone by inflating the cost of insurance. Insurance fraud is estimated to cost each household in Hawai‘i an additional $200 to $300 in increased premiums every year. Informing insurance companies of suspicious insurance fraud activity may help in lowering premiums for all Hawai‘i’s citizens.

To report insurance fraud or for more information, call the State of Hawai‘i’s Insurance Fraud Hotline at (808) 587-7416.

Christine Hirasa is the Public Information Officer for DCCA. Reach her at mailto:chirasa@dcca.hawaii.gov