[Extensions of Remarks]
[Page E236]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


      $20,571.48 A YEAR FOR AN INDIVIDUAL HEALTH INSURANCE POLICY

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                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Tuesday, January 31, 1995
  Mr. STARK. Mr. Speaker, I have just received a letter from a 59 year 
old self-employed realtor in California--a man who has no serious 
medical conditions. Several years ago, he was divorced and used COBRA 
to keep his wife's Prudential group rate policy of $275.96 per month. 
At the end of his COBRA health continuation period, he asked Prudential 
to convert to an individual policy. As the gentleman wrote me, that's 
when Prudential ``dropped a piece of the Rock'' on him. The monthly 
cost of a $100 deductible policy was $1,714.29--or $20,571 a year. For 
a $1,000 deductible, the monthly premium was $1,030--or $12,360 per 
year.
  To help stop these outrageous overcharges, I urge the Congress to 
simply extend the COBRA health continuation time periods indefinitely. 
Once you are in a group policy, you should be able to stay in at the 
group rate plus an appropriate administrative fee.


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