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Laid-Off Workers Investigating Healtlh Savings Plans For Individual Coverage

Newly laid off workers with or without COBRA coverage are opting for Health Savings Account (HSA) insurance policies.

At the same time, more than 50% of those with an HSA policy are using monies from their HSA custodial accounts to pay for Cobra insurance.

In a survey of 612 newly unemployed workers conducted by Information Strategies, Inc. (ISI), 51% of respondents said they had actively investigated HSAs as an alternative healthcare benefit.

Of those choosing to purchase individual insurance, 16% said they were denied individual coverage due to a pre-existing condition.  Almost half, (45%) said they were opting for an HSA while the remainder said they were utilizing other policy offerings or opting not to obtain any coverage.

Of those respondents opting for COBRA, a majority (59%) said they were doing so because of a pre-existing condition or the richness of their current plan.

Only 11% of respondents said they were covered under their employer's HSA plan while 61% said they had more traditional plans while employed.

More than one in three (38%) said they had no employer-sponsored healthcare benefit or were covered by a union-sponsored program.

Only two respondents said they had participated in a Consumer Directed Account plan and both indicated they had rolled-over their accounts into an HSA.

The study has a margin of error of 4% and covered individuals in 31 states.

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