How Layoffs Are Affecting Health Insurance

Rising Costs Equal Rising Concerns As Layoffs Become More Common

In May of 2008, the unemployment rates jumped in both the Raleigh-Cary and Durham metropolitan statistical areas, but that didn't keep the two Triangle MSAs from posting the lowest rates in the state.  The rates for the Raleigh-Cary HSA, which includes Wake, Franklin and Johnston counties, rose to 4.6 percent in May of 2008 from 4.0 percent in April of 2008.   The rate for Durham, which includes Durham, Orange, Chatham and Person counties, climbed to 4.7 percent from 4.1 percent.  Durham posted its largest net gain in jobs in the government sector while losing jobs in manufacturing.  Raleigh-Cary gained its most jobs in the leisure and hospitality sector while losing jobs in business services.  Employment actually increased in both metros, but the number of people looking for work increased at a faster rate.

In this day and age where things are getting more expensive, including health care coverage, there are growing numbers of people who are concerned as to whether or not they will be able to afford their health insurance policies if they are ever laid off from work.  Like most other things, layoffs affect the cost of health insurance, sometimes leading people to look for cheaper health insurance elsewhere or not at all.  The agents at IBD Insurance understand the need to find quality health insurance coverage that is not only affordable, but also extends many of the same benefits that usually come with quality health insurance coverage. 

Looking For Affordable Options: Cheaper Doesn't Always Mean Better

Many people are discovering health spending accounts (HSA) in order to help them battle the expensive cost of health insurance.  An HSA is an account, generally associated with self-employed individuals, in which tax-deferred deposits can be made for medical expenses.  Withdrawals from HSAs are tax-free if they are used to pay for qualified medical expenses.  HSAs are usually required to be coupled with a high-deductible health plan (HDHP), and withdrawals from your HSA go towards paying the deductible expenses in a certain year.  The funds in HSA accounts can be used to cover expenses related to most forms of medical care, disability, dental care, vision care and long-term care, whether the expenses were billed through the qualifying insurance or otherwise.

Another option is the Consolidated Omnibus Budget Reconciliation Act, otherwise referred to as COBRA. COBRA functions to give workers and their families( who have lost their health benefits) the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain conditions.  Under COBRA, individuals may be required to pay the entire premium coverage for up to 102 percent of the cost to the plan.  The types of conditions where this might apply include any of the following:

-voluntary job loss (i.e. resignation)
-involuntary job loss (i.e. layoffs)
-reduction in work hours
-transition between jobs
-death
-divorce

If you are confused about any aspects of your health insurance policy are are interested in getting a health insurance policy with BCBSNC, contact a qualified IBD Insurance Agent, who will be more than happy to address any questions or concerns you may have.  At IBD Insurance, we care about making sure you get quality health insurance as well as the right type of health insurance plan to suit your needs as well as the needs of your family.