Having a health insurance could be a major issue if you are jobless. Health insurance is a must for personal protection but it is expensive too. Most policies in the United States are issued through employers as a part of group insurance benefits so people who are jobless find it difficult getting an affordable health plan. However, there are few options that you can consider when you loss your job.
COBRA provisions for the unemployed
It is mandatory for a company that has more than 20 employees to offer health insurance coverage through COBRA to its terminated employees. COBRA (Consolidated Omnibus Budget Reconciliation Act), a federal provision, gives its former employees and their families the right to enjoy the benefits of a group health insurance available through their former employer for a certain period (usually for 18 months). However, COBRA is extremely expensive as there is no provision that requires your employer to contribute to the premiums of your plan.
Eligibility for COBRA
You must meet the following criteria to be considered eligible for COBRA benefits
• You must apply for the benefits within 60 days of your resignation.
• You were terminated for reasons other than gross misconduct.
• You were eligible for the coverage the day before you lost your job.
Short term health insurance
If you are already looking for another job or if you are recently graduated, you can consider your options for short term health insurance. It will protect you against necessary emergencies and would also cost you less as it is less comprehensive until you find a suitable solution to your financial problems. These types of policies are generally issued in 6 month terms, although you can find some policies that available in 12 month terms.
General tips for the unemployed
When you go jobless and look for your health insurance options, consider the following points for better search results:
1. Start shopping early – Make sure that you start shopping for your health insurance plan early to avoid taking rash decisions.
2. Assess your health condition – If you have any pre-existing health conditions, it is better to avoid getting an individual health plan and stick to your group plan.
3. Choose a plan excluding several treatment facilities – This is an option to lower your premiums. It is better to go for low-cost medical plans that take care of your immediate needs only.
You must remember that you have only a limited time to decide on your health insurance options, so review your needs carefully to avoid any extra expenses.
