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Increase in Cobra Health Insurance Premium???
Posted: Sun Nov 16, 2008 10:44 pm
by Agent79
I've got a guy, diabetic, who left his job and took Cobra on his health insurance (United Healthcare). After about 4 months into it (of his 18 months), he get this letter saying his premium is going up from like $200 to $500 a month on a rate increase. Needless to say, he is in a bind. Can they do this? No rate protection during the Cobra period?
Any help is appreciated. I'm mostly a P & C guy.
Re: Increase in Cobra Health Insurance Premium???
Posted: Mon Nov 17, 2008 7:31 am
by InsMgmt
The only cap is on the amount the prior employer can charge for administration - 2%.
The rate increase seems a bit high. I would have the client ask for the prior year and current rate sheets just to verify the increase, and then check with the broker servicing the group to make sure that all of his personal information is correct (age, sex, etc.). What is it politicians have taught us? Trust, but verify?
If he received an increase to $500, then every other male on the group, within his age bracket, received the same increase. Also, is there a chance that the former employer was picking up a portion of the premium during those first 4 months into the COBRA extension and then stopped?