Being Unemployed Can Still Offer Health Insurance Options
Today’s difficult economic times are not likely to measurably improve in the next year. And many of those who are lucky enough to still have jobs are worried about what the future may bring. The potential for losing a job is bad enough, but losing health care benefits that go along with it makes the situation even worse. For most people, there are a variety of options available when unemployment becomes a reality.
The most commonly known option is COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act. Cobra went into effect in 1986, and basically it requires your former employer’s insurance carrier to allow you to purchase out of your own pocket, your health benefits for an additional 18 months. If your employer was paying part of your premium, you’ll be required to pay the entire amount, and that could potentially cause your insurance cost to increase.
Another option is what is known as temporary health insurance. This is designed specifically for short lapses of health care coverage while you’re between jobs and not covered by an employer’s plan. Policies frequently are written for a period of six months, and the cost is usually very reasonable. This option often works out to be less expensive than a COBRA plan, since many large companies pay a significant part of the employee’s health premium.
Medicaid is another option to consider, though eligibility is normally limited by income and family situations. Some states also offer low cost insurance on a sliding scale to those who don’t have health care coverage, with special plans for children to receive free health care as well. Contacting your state’s Social Services agency will help you with how best to proceed and what programs you qualify for.
Keeping your family insured through tough times is important. And being informed about your options in advance can take away the stress you’ll likely be under when the time comes. Looking into what’s available in advance can make a big difference.
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