[Stratoscope]

Under current California law, when your COBRA runs out, you are entitled to a HIPAA guaranteed issue plan. Insurers can't turn you down for this plan as long as you've had insurance for 18 months and have exhausted your COBRA options.

For example, when you apply for a Blue Shield individual plan, you have three options:

1) Answer all the medical questions and apply for underwritten coverage.

2) Skip all the medical questions and apply for a guaranteed issue plan only (if you meet the 18 month and COBRA requirements).

3) Apply for both simultaneously: answer the medical questions and hope to get underwritten coverage, but also request automatic guaranteed issue if they decline the underwritten plan. This is the option I'd recommend of course. (Even with a pre-existing condition, it's possible that they may still offer an underwritten plan in a higher rate tier, which would still be less than the guaranteed issue plan.)

More information from the California Department of Managed Health Care:

http://www.hmohelp.ca.gov/dmhc_consumer/hp/hp_cobra.aspx

http://www.hmohelp.ca.gov/dmhc_consumer/hp/hp_hipaacp.aspx