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.