THIS ELECTRONIC VERSION MAY DIFFER SLIGHTLY FROM PRINTED VERSION
Gary VonAlmen of Highland, who has over 28 years with LTV as a mobile equipment mechanic, looks over information to apply for unemployment during a meeting at the Local 1010 hall in East Chicago.(PHOTO) (E. JASON WAMBSGANS/POST-TRIBUNE)
Unemployed at age 57, Larry Yarbrough isn't optimistic about his job prospects.But the Chesterton resident, who has spent his last 37 years at LTV's Indiana Harbor Works, says he doesn't have any other choice but to find work somewhere.
He could retire if it weren't for one major problem -- he needs health insurance. And, he knows it's going to be expensive if he tries to get it on his own.
'My wife's not in very good shape. We have health insurance now, but who knows for how long,' he said Friday as he prepared for his last few days at the East Chicago steel mill.
After a judge on Friday granted LTV's request to halt steel production at its mills in East Chicago, Hennepin, Ill., and Cleveland, LTV workers realized their fear of being uninsured.
Workers' and retirees' health insurance will continue through a Dec. 19 hearing on LTV's motion to toss out the labor agreement. Depending on the judge's decision, that could be the end of company-funded health insurance for more than 7,000 workers and 100,000 retirees companywide.
Health insurance options are limited.
Terminated workers can continue the company's group insurance policy through COBRA and pay the premiums on their own; they can get their own individual or family policy through an insurance company; some can apply for Medicaid or another state/federally funded program; or they can get another job and hopefully get on that company's policy.
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, basically extends the company's health insurance program.
It is a federal law that requires employer groups to provide the option of continuing a health plan, but requires the employee to start paying the premium, Amy Strati, chief council for the Indiana Department of Insurance, explained.
The option is available only if the company continues to exist, Strati said. If the company discontinues its group health insurance, COBRA does not apply. COBRA is also only available for a maximum of 18 months.
'COBRA is available if the worker voluntarily or involuntarily leaves a job as long as the person is not fired for gross negligence,' she said.
For steel workers, COBRA could be a significant expense since under most health plans the company paid the entire premium. Monthly premiums vary depending on how many people are on the plan. There is a 2 percent administrative charge.
The most important thing to remember about replacement health insurance, whether it's through COBRA or simply buying an individual policy, is that terminated employees must sign up for a plan within 63 days to avoid penalties, Strati said.
That's because another federal law, the Health Insurance Portability and Accountability Act, which protects people from being slapped with a pre-existing condition penalty, expires after a 63-day break from insurance coverage.
For those employees who can't find a job before COBRA's 18-month life is over, personal policies through insurance companies are options. However, depending on age, number of dependents and health, that can be expensive.
For those who can't afford individual policies, there are some state/federal programs available.
In Indiana, these programs are provided through the Indiana Family and Social Services Administration. Options include Medicaid, Hoosier Healthwise, the Indiana Long Term Care Insurance Program, Hospital Care for Indigents and some dental and prescription programs.
