We are looking into health insurance for my wife and have been turned down by a few carriers but one has said they would cover her at a fair price after her "Cobra expires" the name of this company is Consumer Alliance has any one heard of them? If so good and or bad reports would be usefull
Thanks Mic

A Google search turned up some pretty bad complaints about Consumer Alliance of taking the money and not covering anything.

Sounds like she has some preexisting conditions making it difficult to get underwriting approval. Since she's still on COBRA you have the option of HIPAA coverage which guarantees one of health coverage without preexisting conditions exclusions. There are strict rules to follow to get it - one info source is here.. You can also search on this forum and on the other forum that you posted this question on for "HIPAA". There has to be a seamless conversion from COBRA to the HIPAA provided policy. Rates are also limited by law to either 103% or 105% of the rate for similar coverages offered so it should be competitive.

A minor correction, assuming I am right. The rates are only limited by law when under the COBRA coverage period. Upon on conversion from COBRA to individual policy rates are no longer restricted. At least this is my understanding from my own research. As I am in the process this month of making the conversion, which we were forced to do since my wife has a preexisting condition which greatly restricts our options.

It is my belief that insurance rates have to be filed and approved by the Ins. Commissions of the various states in which a company does business. It is also my understanding that those filings are to be done on the basis of a policy class - not on the basis of 'who you are.' So when there is a policy, issued as a class, as a guarantied issue policy under HIPAA, it is approved at the price that conforms with the federal HIPAA law, within percentage points of that which it is replacing (the policy that is being replaced may have a higher price than what the insured realizes in that some employers may subsidize a portion of even a COBRA policy).

It would stand to reason though, that as the base pricing class (the cost of COBRA, for example) increases annually that the related HIPAA guaranty issue policy would also increase in lockstep. It is not a situation though, that, a year or whatever after being issued, the HIPAA issued policy premiums can be raised willy-nilly without reference to the cost of policies then being issued under similar circumstances.

My HIPAA issued policy has gradually increased about 15% in the 11 yrs since issued.

Avan,

FWIW I don't necessarily disagree with the above except for one minor exception. When under COBRA the rate is limited to the cost of the policy to the former employer plus a small percentage. That would be the full cost of the policy. While the insured may have originally benefited to whatever extent the employer paid part or all of the cost. So, yes one could potentially see three sources of increased cost, 1. From the employer no longer paying part of the cost, 2. From the small percentage allowed above the employer's cost. 3. If the original employer's cost increases, either due decreasing number of employees or simply annual increase in policy premiums.

Once conversion occurs then there is a broader set regulations dealing with rate filing and approval by the various state insurance commissions. At this point then premium increases are tied to policy class and assorted other arcane maze of rules and regulations. Some of which may fall under the rules and regulations implemented via HIPAA. However, at this point there is no restriction on rates because of conversion under COBRA. The policy is now rated and premiums determined as with any policy under the rules and regulations of the state's insurance commission. Also, if a person now decides seek a different insurer there is no longer guaranteed coverage. It is true that many states have implemented varying rules with respect to guaranteed coverage under state laws for both uninsured and others with preexisting conditions which would otherwise prevent them from gaining coverage.

I don't mean begin a debate nor claim any great expertise on the subject. Like you said, this is my understanding. It is a difficult and confusing maze to navigate. In the particular case of wife and myself, our cost has increased roughly 33% even while still under COBRA. This is largely due the shrinking size of my former employer, to the point they are now paying small business rates. Because of this upon conversion just recently sent in, our cost while quite high will only increase a few dollars above what we have been paying under COBRA.

Thanks for all your replys. Yes she has underlying problems she is overweight and has hypertension which is controlled by meds.Hippa wants 712 per mo. just for her. I know now why people are screaming for socialized medicine. These carriers want the no problem income and we pay for the Illegals thru our taxes but yet our government punishes the ones that are no longer usefull. I am about to move north and learn to say "hey" after every statement. But who knows it could be worse. sorry to rant but I am a little POed.

MIC, I totally understand your frustration! Hubby was turned down because of his weight and I for hypertension. Unfortunately, we made the mistake of letting our COBRA lapse (lost track of the date and missed a postmark by ONE DAY!). Then we discovered that the only coverage we could get was our states high risk pool--at $1000 EACH!

Brenda

My retirement has been delayed 4 years so far because of health insurance costs. Lucky for me I applied for a private policy before I quit my job. My assumption wife and I could get a policy was wrong. Denied at any price. So I work and stay on the company plan. My savings I would have lived on in retirement is building up to pay for the higher cost of coverage, whatever it may turn out to be after cobra to age 65. I am saving to be able to pay 2000 a month coverage of us two. I guess I am too middle class to risk not having insurance, meaning I have a little to loose, and to un-rich to self insure.

The good news is I feel great!