COBRA: There are better choices

Direct Choice Inc. Senior Account Director Christine Wagner has developed a successful career in direct marketing, and in an effort to  continue to build her client base and expertise, she has begun using social media as a business tool.

COBRA. It is a scary word, not just because of the animal of the same name, but because of the connotation and synonyms that accompany the term for an individual in the world of health insurance.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires most employers that offer group health plans to allow recently laid-off individuals to temporarily keep their coverage beyond their employment. Obviously, this is a tremendous assist for those dealing with the stress of recent unemployment. Too often though, an individual is so used to having their insurance through their company that they will remain on the plan through COBRA, despite the increase in cost.

For people that are on COBRA, it is highly recommended that they call their provider directly and discuss plan options. For example, if someone is on a “Cadillac” PPO Plan through their employer, but realizes it is like paying another mortgage, a simple phone call to discuss alternative plans could be available to you based on your PERSONAL situation. For example:

• Do you have a family or is it just you?
• Do you have medical conditions or are you a healthy individual who needs “just in case” coverage?

For insurers, these are the types of questions that they should be proactively posing to their COBRA members to help form a more direct relationship, learn more about their situation and make personalized recommendations. Additionally, insurance companies should develop a more structured workflow for contacting individuals that have recently lost their job due to the closing of a company because those people are NOT eligible for COBRA coverage (because the company’s Group Policy will have been dissolved). With Healthcare Reform nearing, it will be critical for insurers to have close, comfortable relationships with their member-base to prevent individuals from “jumping ship.”

As experts in healthcare marketing, we are doing our part to work with clients to develop strategies for communicating with those on COBRA.  We are currently testing a mailing for one BCBS client to individuals throughout their state that are on COBRA with to attempt to strengthen the relationship with residents.

Insurers need to understand who their COBRA membership is, communicate with them, let them know that they are there to support their health insurance needs. It should really be as simple a review of a database. With Health Care Reform around the corner, which will allow employers to discontinue insurance if they choose, having a healthy membership base who is comfortable with their plan will put insurance companies at a tremendous advantage for retaining business.

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Direct Choice Inc. is a full-service direct marketing agency that has worked with national and regional brands in a wide variety of vertical markets. In addition to this blog, you can also find us on Facebook, Twitter, YouTube and LinkedIn.