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Affordable Health Insurance
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Few were spared. Several big companies outsourced jobs to other countries to save on costs. Even small companies are cutting back...trying to do more with fewer people. Most companies downsize to achieve their growth and profitability targets. Others need to do it in order to survive.
As a result, many people (who for years have benefited from employer-sponsored insurance) now find themselves, for the first time, trying to understand the health insurance market and figuring out what health care benefits they are entitled to.
If you are unemployed or recently laid off, you may be asking the following questions:
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"What is COBRA? Who is entitled to COBRA?" "What if I’m not eligible for COBRA?"
"What if I can’t afford the COBRA premiums?"
"Do I have other insurance alternatives?"
"Should I risk not having health insurance for a few months?"
Before we answer the questions above, you must know that:
YES, you have options. There are several health insurance for the unmployed that are affordable and even free. And...
NO, you shouldn’t opt to be without health insurance coverage even if you think you are healthy. A knee injury or a major illness could cause you significant financial losses. And in most states, you’ll lose your pre-existing-conditions coverage if you go without insurance for more than 63 days.
So please don't delay. You need to act right away to keep your health coverage and ensure you have adequate protection during this transition period.
Here are the various options available to you:
Private Sector Options
1. Elect COBRA Coverage
2. Convert to non-group plan
3. Get in your spouse’s employer-sponsored health coverage
4. Consider short-term insurance
5. Buy individual insurance
6. Look into HSAs
7. Join trade associations
Public Options
8. Check out Medicare
9. Apply for Medicaid
10. Visit your local health care clinics
Let's now explore each health coverage option…
Carefully review each and determine which one is appropriate to your situation. Contact your state insurance commissioner office to learn more about your rights and protection under the state insurance laws.
COBRA is the federal Consolidated Omnibus Budget Reconciliation Act. Under COBRA, companies with 20 or more employees are required to offer continued group plan coverage to you, your spouse and children for 18 months in the event of layoff, strike, reduction in hours or other displacement from job.
You must notify your employer within 60 days if you wish to elect COBRA coverage. You also must pay the entire premium, which your employer used to pay, plus 2% to cover the COBRA administrative cost.
True, COBRA can prove to be a relatively expensive option. But it is definitely worth considering if you or any member of your family suffers from a pre-existing condition or is pregnant since COBRA offers guaranteed coverage from your previous plan.
Click here to read more on COBRA.
Once you've exhausted all of your COBRA benefits you have the right to buy a guaranteed issue individual policy (guaranteed issue since the insurance cannot exclude coverage for pre-existing health conditions), under HIPAA (Health Insurance Portability and Accountability Act), provided you obtain new coverage within 63 days. Otherwise, you lose your right to a guaranteed-issue policy. If you wish to learn more about HIPAA, click here.
If you are not eligible for COBRA, you may be able to convert your group policy to a non-group plan with your former insurer. Many states require insurance companies to include "conversion rights" in group insurance contracts.
This means you can not be turned down for coverage if you opt to buy an individual insurance from your former insurer. In addition, conversion policies will not impose new pre-existing period exclusion periods.
However, conversion policies tend to be more expensive and have limited benefits compared to the group insurance. Check with your state insurance commissioner’s office for more information about your states’ conversion coverage.
3. Get in your spouse's employer-sponsored health coverage.
You and your children may be eligible for dependent coverage through your spouse or domestic partner's employer-sponsored health insurance.
Employers are legally required to allow unemployed spouses of employees to sign on their spouse's plan immediately, without having to wait for an enrollment period.
Keep in mind that not all employers offer such coverage and therefore, you may have to pay the full cost. So check with your spouse / partner’s employer to learn more about the company’s health plan.
4. Consider short-term insurance.
If you are generally healthy and expect to get a job in a short period of time, you may consider getting short-term insurance.
This policy, typically written for 1 - 6 months and renewable once, covers hospitalization, intensive care, and surgical and doctors’ care provided in the hospital, as well as other related expenses, such as X-rays or laboratory tests.
However, it does not cover preexisting condition and preventive care, well baby care, immunizations, dental or vision.
This type of insurance is considered "bare bones" insurance. Premiums are low, application is fast, and coverage begins immediately. More and more people are choosing short-term insurance as their interim policy as they transition to a new job and wait for their new coverage to kick-in (some employers require a waiting period before a new employee gets coverage).
To find affordable short term insurance, click here.
5. Buy individual health insurance.
If you have been or expect to be unemployed for an extended period of time (and do not qualify for public programs, such as Medicare or Medicaid), you may choose to buy individual insurance.
Individual policies are generally more expensive than group plans. Insurers can also ask about your health condition, exclude preexisting condition or deny coverage depending on your medical history.
Buying individual insurance however opens up several health care plan options for you to choose from. And different insurance companies provide different health plans offering a wide variety of benefits. So shop around before you buy an individual insurance policy.
If you wish to get FREE individual health insurance quotes and compare different health plans, click here.
6. Look into Health Savings Account (HSA).
Health Savings Account is a relatively new health coverage option. It is not a health insurance plan, but a special tax-sheltered savings account, combined with a high-deductible (low premium) health insurance plan, that you can use to pay for qualifying medical expenses.
You may incur penalties when you withdraw funds from the account for any purpose other than qualifying medical expenses.
Unused funds remain in the account and may be invested at your discretion. The account earns tax-free interest or investment returns until retirement.
To find an HSA plan that's right for you, click here.
Many trade, professional or alumni associations are able to offer health insurance as benefits to their members. And because there is strength numbers, these associations are able to offer group coverage, which is more comprehensive and lower in cost.
The plans offered are mostly HMOs as well as basic hospital-surgical policies, disability and long-term insurance.
Check to see if any of the associations you belong to offer insurance. You can also call your State’s Department of Labor to get more information about such associations.
You may be eligible for Medicare if you are aged 65 and older or suffer from disability. Medicare is a national health insurance program.
Medicare offers hospitalization (Part A) and outpatient services (Part B). Part A requires a deductible and Part B premium depending upon how long you’ve worked and how much you have contributed to Medicare from payroll deductions.
To qualify for Medicare you must be a US citizen or a permanent resident. For more information, contact the Social Security Administration at 800-772-1213, or visit
http://www.medicare.gov/
Medicaid is a state-administered program that provides medical care to certain individuals and families with low incomes and resources.
You should look into applying for Medicaid if you: have extremely low income and limited resources, disabled, or pregnant.
(Click here for information on maternity insurance options.)
Medicaid covers in- and outpatient hospital services, doctor visits, and long term care services such as nursing home care or community-based care, among others.
Additional services (e.g., coverage of prescription drugs) are optional and are elected by states. Check with your respective state Medicaid office to learn about eligibility and benefits.
10. Visit your local health care clinics
If you do not qualify for any of the health insurance programs, you may get free or low-cost health care services at you local clinics. Services vary across clinics and may include medical, dental and vision care.
Contact your local department of health to see if you qualify. Visit http://ask.hrsa.gov/pc/ to find a local health care clinic nearest you.
If you're looking for affordable dental insurance, click here.
Read More:
Individual and Family Insurance - Find out what individual and family health insurance plan best fits your needs and where to get affordable health insurance quotes.
Maternity Insurance if you're planning a family
Know what you can do to get maternity health insurance, and how to save on maternity costs.
Maternity Insurance if you are pregnant and unemployed
Find out where to get maternity health insurance even if you're unemployed and can not get insured.
Health Savings Account (HSA)
Take control of your health care costs and save on medical expenses with a Health Saving Account. Also learn about HSA Contributions and qualified expenses.
Senior Health Coveragee
Valuable information and resources to help you find affordable senior health insurance that fits your or your loved ones' medical needs.
Health Coverage for the Self-Employed
Protect yourself, your family and your finances. Learn where to get and how to save on self-employed health insurance.
Small Business Insurance
Get tips on getting affordable small business health insurance. Save on health care costs and taxes.
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