What would yo advise them to do?

[Hillbilly]

Interesting health insurance discussion with a family member last week. I'll try to cover the basics:

1. Couple (male/female) in early 40's living in TN
2. Are FI today, net worth ~ $1M -1.5M (my guess), both want to RE at same time
3. Both still work with male carrying female on his work group insurance plan
4. Female was turned down (rejected) in 2001 for individual insurance policy by BCBS, non-reoccuring skin (basal) cancer & fibromyalgia (still has)were thought to be the issues
5. Male's COBRA insurance will extend for 3 months after quitting work
6. A few of TN's uninsurable insurance program (AccessTN) requirements are that one must be turned down twice (rejected) to secure individual policy and be without insurance for the past 6 months when applying. Also, no access to group coverage is available when applying.
7. HIPPA policy costs 3X-4X normal policy, TN uninsured program costs 2X-3X normal policy, either can be afforded but HIPPA would be a stretch on the budget long term
8. AccessTN will allow 6,000 max. in program (ie program may close at anytime)


Assumptions: Assume the female would be qualify for either TN uninsured program (AccessTN) or be HIPPA eligible, assume the male would be able to secure his own policy with riders

Question(s): For the female, would you recommend that she try to qualify for HIPPA eligible individual health insurance after COBRA OR should she go without health insurance for 6 months after hubby's COBRA expires to qualify for the State's AccessTN program for uninsurables?

If you feel that she should go without insurance to qualify for AccessTN, what would you propose to be the effective and feasible risk mitigation measures to use during the 6 months without insurance, if any?


Thanks, Hillbilly