December 2001
To: SPEEA members being laid off
SPEEA remains committed to helping you during the difficult times ahead. We know that health insurance is one of your most important benefits and an area around which you probably have many questions. As you know, your current Boeing plan will continue for 3 full months after your layoff effective date (unless you become insured under another employer’s plan). At that time, under Federal law, you will have the option of continuing the coverage you have through Boeing by paying the premiums yourself. This coverage extension typically lasts 18 months, but can be extended for up to 29 months under certain circumstances. Referred to as COBRA, this continuation of coverage is something you should seriously consider. Carefully read and review all of the materials you will be receiving from the Company concerning your rights and obligations under COBRA. Remember that if you refuse coverage, you will not be able to subsequently enroll for coverage through the Boeing benefit plans.
We realize that the cost of coverage is not inexpensive. SPEEA has compiled a list of alternative individual-health coverage plans that may cost you less. HOWEVER, you should not make any decision on rejecting COBRA or applying for one of the individual plans until you completely understand the costs, benefits and restrictions that may apply. SPEEA does not endorse or recommend any of these plans; nor can we recommend or advise a particular course of action for an individual member. We do want to make information available to you so that you have as much data as possible in making your choices. Among the most important things to consider as you review your options are:
COBRA
The cost of COBRA is based on the actual premium rate paid by Boeing increased by 2% plus an allowance for administrative expenses. This allows you to purchase insurance at more favorable group rates
The plan benefits remain the same as those offered to employees. You cannot be denied coverage for a benefit if it is provided to active participants.
If you reject coverage, you may not be able to change your mind at a later date. Only under limited circumstances can you get another chance at accepting COBRA if you initially reject it. You should carefully review the materials you received from The Boeing Company.
OTHER, INDIVIDUAL COVERAGE
The cost is based on your individual risk factors such as age, gender, smoking status, number of dependents, and health status. For most plans, you will have to complete a medical application that may include detailed questions about your past and current health conditions; you can be rejected for coverage. You may be required to pay for coverage in advance - up to six months in some cases.
The plan-of-benefits are not the same as your Boeing coverage. Many benefits covered under your current Company plan may not be covered or might have major restrictions. In particular, coverage for illness or injury that is a "pre-existing condition" (i.e. a condition you already have when you became covered under the plan) may provide only very limited benefits or none at all. It may mean that this type of individual plan is only good for "healthy people"
In addition, coverage may only be available for a limited period of time - such as 180 days.
As you review a plan, check for these typical exclusions:
This is not a complete list, but we have seen these exclusions included in some individual plans.
PLANS
Some of the available plans out there can be found on the following websites. As we find out about more plans, we’ll add the links below. Just a reminder that SPEEA does not endorse or recommend ANY of these plans. We encourage you to read all the details of any plan before you decide to enroll.
http://www.ehealthinsurance.com/ (outlines various plans available)
http://www.wa.gov/hca/basichealth.htm (WA Basic Health Plan, sliding scale based on income & family size)
[Information prepared by SPEEA’s benefits consultants]