MOUNTAIN VIEW, CA -- 09/22/08 --
eHealth, Inc. (NASDAQ: EHTH),
parent company of eHealthInsurance, has launched a new educational
initiative designed to help consumers and HR professionals make informed
decisions about COBRA coverage and
COBRA alternatives. The
initiative includes a newly-released national survey which suggests that
many consumers aren't even aware of COBRA (Consolidated Omnibus Budget
Reconciliation Act) and
health
insurance alternatives to COBRA. eHealthInsurance also launched a new
website called the
COBRA Learning
Center, which features helpful benefits information and financial
tools. Extending the educational initiative are partnerships with national
benefits advisors like Willis Group that work closely with HR professionals
and COBRA-eligible consumers. Each aspect of the program is designed to
help consumers as they face decisions about COBRA coverage in the wake of
increased nationwide unemployment and layoffs.
eHealthInsurance commissioned a nationwide survey of over 1,000 respondents
to understand consumer awareness of COBRA and other health insurance
alternatives.(1) The survey found that four in 10 adults surveyed knew
little or nothing about COBRA. Sixty percent of adults surveyed did not
know that individually purchased health insurance can be less expensive
than COBRA. Additionally, only 45% of respondents were aware that
individually purchased health insurance can provide similar benefits to a
COBRA plan.
Additional insights from the survey include:
-- Half of those surveyed who were eligible for COBRA coverage at some
point in the past elected to receive it for themselves or a family member,
while 47% say they declined coverage.
-- The most common reasons respondents decided to opt for COBRA health
insurance coverage were that they liked their employer's plan and wanted to
continue with the same network and/or benefits (59%) and they thought it
was their only option for health insurance coverage (52%).
-- Expense was the most common reason people eligible for COBRA coverage
declined it (68%), followed by the fact they were able to be covered on
another family member's plan (44%).
-- Thirty percent of those surveyed who refused COBRA coverage decided to
go without health insurance coverage.
-- Complete survey results are available upon request.
To address this information gap, eHealthInsurance launched the COBRA
Learning Center (www.COBRAlearning.com), which
provides information and tools to help consumers and HR professionals learn
about health insurance options and make the best choices based on
individual needs and budget. The website features eligibility guides,
educational content, and printable brochures and materials. Visitors can
use a new, interactive COBRA
calculator to compare COBRA premiums to some of the more affordable
individual and family plans that may be available to them. Consumers can
also compare and apply for individual plans online and utilize all of the
robust shopping, sorting and customer service features offered on
www.ehealthinsurance.com.
eHealthInsurance also launched a co-branded website with leading benefits
advisor Willis Group to distribute the COBRA Learning Center to Willis
agents and their clients. This provides helpful resources to HR
professionals that are advising employees during difficult transitions such
as job loss.
"With over 600,000 U.S. jobs lost so far this year,(2) a top priority for
our company is to help workers who are facing unemployment find the right health
insurance coverage," said Gary
Lauer, president and CEO of eHealth, Inc. "COBRA is an important
option, but our research and experience working with the uninsured has
shown us that many employees and HR professionals are not aware of the
alternatives. The COBRA Learning Center provides valuable information to
this population who otherwise might not know that they can find affordable
coverage in the individual health insurance market."
COBRA coverage is an important option for many, especially those with
pre-existing health conditions, because individuals cannot be denied
coverage based on their medical history. However, COBRA can be very
expensive because consumers often must pay up to 102% of the premium that
was partially covered by their employer.(3) By comparing rates and
purchasing individual insurance through eHealthInsurance, consumers can
potentially save up to 60% over COBRA premiums.(4)
"When I was laid off, I
accepted COBRA coverage at $620 a month because I didn't know that I could
find an individual plan with comparable benefits at a far lower rate," said
30-year-old eHealthInsurance member Jason Bobo from Dallas, Texas. "We
found a plan for my family online for only $288 a month. With four small
children under the age of seven and managing through a tough economy, it
was important to have both the right benefits, such as well baby care, and
the cost savings of more than $300 a month on premiums."
About eHealth
eHealth, Inc. (NASDAQ: EHTH) is the parent company of eHealthInsurance, the
nation's leading online source of health insurance for individuals,
families and small businesses. Through the company's website,
www.ehealthinsurance.com, consumers can get quotes from leading health
insurance carriers, compare plans side by side, and apply for and purchase
health insurance. eHealthInsurance offers thousands of health plans
underwritten by more than 180 of the nation's leading health insurance
companies. eHealthInsurance is licensed to sell health insurance in all 50
states and the District of Columbia. eHealthInsurance and eHealth are
registered trademarks of eHealthInsurance Services, Inc.
Sources:
(1) Survey conducted on the telephone September 5-8, 2008 among a random
national sample of 1,004 adults 18 years and older. The results have a
margin of error of plus or minus 3.2% among the total sample of 1004
adults. Certain questions did not apply to all of the respondents due to
their responses to other survey questions. As a result, the sample size
was smaller for those questions, which causes the margin of error to be
greater. Opinion Research Corporation of Princeton, NJ, conducted the
fieldwork.
(2) September 5, 2008, U.S. Department of Labor, Bureau of Labor
Statistics, Commissioner's Statement on the Employment Situation,
http://www.bls.gov/news.release/jec.nr0.htm
(3) http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html, U.S. Department
of Labor, FAQs About COBRA Continuation Health Coverage
(4) Calculated using average total premium cost for employer-sponsored
health insurance coverage from April 2006 to April 2007 reflected in the
Henry J. Kaiser Foundation study Employee Health Benefits: 2007 Annual
Survey (http://www.kff.org/insurance/7672/index.cfm) plus the standard 2%
administration cost charged to most COBRA participants; then compared to
average premiums for privately-purchased individual and family coverage in
August 2006 cited by eHealth, Inc. and Forrester Research in The Cost and
Benefits of Individual Health Insurance Plans: 2007, April, 2007
(http://www.ehealthinsurance.com/content/expertcenterNew/CostBenefitsReportSeptember2007.pdf).
For more information, please contact:
Sande Drew
Senior Media Consultant
eHealth, Inc.
Email Contact
(916) 207-7674
Theresa Maloney
Cogenta Communications
Email Contact
(925) 287-1509
