Weak Economy Leads to Mass Layoffs

Companies all across the country are feeling the crunch of our economic crisis, with millions of people finding themselves without a job, and consequently, without health insurance . Even employees who do not lose their jobs, may be downsized to part time and will also lose their benefits.


It’s not only big investment firms and banks that are laying off people. As of March 2008 the following Wall Street Firms have cut the following amount of jobs:


Citigroup~ 6,200

Lehman Brothers~ 4,990

Bank of America~ 3,650

Morgan Stanley~ 2,940

Washington Mutual~ 2,600

Merrill Lynch~ 2,220

HSBC~ 1,650

Bear Stearns~ 1,550

WestLB~ 1,530

UBS~ 1,500

Goldman Sachs~ 1,500

National City~ 900

Credit Suisse~ 820

Royal Bank of Canada~ 500

Fortis~ 500

Wells Fargo~ 500

Wachovia~ 443

Deutsche Bank~ 370

JPMorgan Chase~ 100


TOTAL ~ 34,463


If you get your health insurance through your job, you probably get a certain amount of money deducted from your paycheck to be applied toward the coverage. However, the amount deducted is typically only a small percentage of the insurance premium, while your employer pays the rest to the insurance company each month. When you leave your job, your employer may be required by law to give you an opportunity to remain on the employer's plan; this is called COBRA continuation coverage, and it is a continuation of the exact same benefits you received as an employee. However, your employer is under no obligation to pay any part of COBRA. Let's say, for example, that you get $100 per month deducted from your paychecks for health coverage. However, the actual cost of your health coverage is $600 per month. Thus, your employer has been paying the insurance company $500 per month on your behalf. When you leave your job, you receive a notice stating that if you choose to elect COBRA, your premium will be $612 per month, at a time when you no longer have any income.

These are scary times, and any financial planner will tell you, the best way to safeguard your fiscal future is to maintain health insurance.

Thankfully, the folks at Insurance Services of America have a solution:

Short Term Health Insurance.

Our short term health plans are specifically designed to provide medical coverage with very low premiums to keep you covered through these trying times.

The Secure Short Term Health Plan is an affordable alternative to Cobra, and you can apply online. It also includes an association discount card that provides discounts on things like prescriptions, dental, and vision. Visit our website today for an instant quote and see for yourself how our coverage really is affordable .

We know we will all make it through these difficult times.

Let the experts at Insurance Services of America help you avoid being bitten by a COBRA.