SITE A LINK TO INSURANCE JOB CUTS LIFT NEED FOR HEALTH COVERAGE.

Byline: Evan Pondel Staff Writer

When Tasha O'Rourke's pregnancy reached the three-month mark, she left her job as a human resources recruiter and bought her employer's COBRA health insurance plan. But she soon grew flustered with the $350 monthly payments.

The Northridge resident turned to eHealthinsurance.com, a clearinghouse for insurance companies, to ease her troubles and found a cheaper plan from Newbury Park-based Blue Cross of California.

``The COBRA plan was so expensive and I didn't know what to do. Luckily, I found a new plan that saved me a lot of money,'' said O'Rourke, 27, who decided to take some time off less than a year ago. ``All I had to do was run a search on the site for different plans and instantly had several to choose from.''

O'Rourke was able to purchase a plan that insured her entire family. And since her Blue Cross application is still pending, she was able to buy a short-term plan for about $115 a month offered by Milwaukee, Wis.-based Fortis Health.

``So, I was able to not only buy a plan that was affordable, I also was able to get into something for the interim,'' she said. ``That was really beneficial to my needs and the whole process was without hassle.''

With a recent surge in job cuts, Sunnyvale, Calif.-based eHealthinsurance expects to see an increase in traffic.

Chicago outplacement firm Challenger, Gray & Christmas recently reported that 212,704 job cuts were announced in January, up 32 percent from December and the third-worst month since the company began the survey in 1993.

Though eHealthinsurance has yet to drive its business model into the black, it continues to ink deals with health insurance groups,increasing the pool of options for consumers.

``Our business is all about marketing and selling health insurance online,'' said Gary Lauer, president and chief executive officer of eHealthinsurance. ``We try to provide enough knowledge so that customers can make an informed and knowledgeable decision.''

Despite eHealthinsurance's optimism that continued job cuts could bolster business, House Republicans are pushing for a measure that would augment an extension of company benefits to workers who are laid off. It would come in the form of a tax credit to help the unemployed pay for health insurance.

Buying supplementary health insurance would not be an immediate priority under this plan.

Democrats, however, said the credit is too controversial and that lawmakers should extend unemployment benefits by an additional 13 weeks.

This, then could mean more business for the Internet company.

Blue Cross of California and Health Net of California are among the myriad groups that offer plans at eHealthinsurance.com.

Alan Katz, a vice president for individual and small group sales at Newbury Park-based Blue Cross, said eHealthinsurance is their largest agent in California. While Katz would not say how much insurance Blue Cross writes through the site, he did note that it is a top producer.

``And we treat them like any other insurance agent we have and they get a commission for the business they bring in,'' he said.

That means for most Blue Cross insurance plans purchased through the site, eHealthinsurance receives around 20 percent of the premium paid per month for the first year.

``EHealthinsurance still has to bring in a lot of business to turn a profit.'' Katz said. ``But the Internet is a tool that we use ... and it appears that eHealth keeps chugging along with the medium.''

Likewise, Woodland Hills-based Health Net would not provide details about the commission eHealthinsurance receives selling its policies.

``But we do find them a useful tool for reaching health-care consumers,'' said Brad Kieffer, spokesman for the company.

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Photo:

(color) Tasha O'Rourke, an eHealthinsurance.com customer, holds her 5-month-old daughter, Avery, at their Northridge home. O'Rourke was able to get long-term and interim coverage.

Phil McCarten/Staff Photographer