MOUNTAIN VIEW, CA, Sep 22 (MARKET WIRE) --
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/CostBenefitsReportSepte
ber2007.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
Copyright 2008, Market Wire, All rights reserved.
-0-
