Insuring Yourself After Losing A Job

Sadly, it is a situation that more and more Americans are finding themselves in these days-out of work and uninsured. When a worker loses a job they lose more than just their income, they also lose their health insurance. Fortunately, there are options available for a person to insure themselves, even after losing a job.

COBRA

COBRA refers to the health provision act passed by congress in 1986 that requires that group health insurance be made available for individuals for a period of 18 months after they leave their job. COBRA is available both to people who have left their jobs voluntarily and to those who were terminated (unless they were terminated for gross misconduct). COBRA is also available to those who have had their hours cut and as a result are no longer eligible for their company's insurance plan.

COBRA allows the individual to essentially stay on the same plan they were on while they were working. The difference is that the individual pays the premium, whereas the employer may have paid the premium while the individual was employed. COBRA can be an excellent option for those individuals and families that receive a lot of healthcare. Doctor's visits, medical procedures, prescription drugs and other healthcare expenses can add up quickly. As opposed to paying these fees out-of-pocket, COBRA works just like your insurance plan worked while you were employed. In some cases it is more economical to pay the expensive healthcare premium and eliminate the out-of-pocket expenses. However, if you are a person who does not consume a lot of healthcare, you may be better off purchasing a short term health insurance policy from a private company.

Medicaid

Medicaid is the government program that provides funds for people who cannot afford healthcare for themselves. Eligibility is determined by income and available assets, though other factors are involved as well. Not everyone living in poverty is eligible for Medicaid, and at the same time there are some who are not in poverty who are eligible, simply based on the amount of healthcare bills they may require. Medicaid is a good option for those who are eligible.

Temporary Health Insurance

Temporary health insurance is a type of short term insurance intended to cover individuals who either cannot be covered any other way, or who choose it as a less expensive option to other means of coverage. The recent epidemic of long-term unemployment and underemployment has left many without health insurance once their 18-month COBRA window closes. Short term insurance is a way of receiving coverage until adequate employment can be found.

Temporary insurance may be more appealing than COBRA to some individuals and families. Not everyone needs the medical benefits offered in a group health insurance plan. Thus, electing COBRA coverage may mean paying for more than is needed for some individuals. A short term policy may be a better option. One may elect to pay a low premium for very basic coverage. Such a plan is intended to protect against major medical expenses, while leaving the responsibilities for the more everyday medical expenses up to the individual. However, temporary health insurance is highly customizable to the needs of the individual, thus many different types of coverage plans can be selected.

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