Holding On To Health Insurance
If job loss is a fact of life or a distinct future possibility, it’s important to take steps to hold on to as much health insurance as possible. Unless transferring to a spouse’s coverage is an option (generally possible for up to 30 days after coverage loss), there are some important options to consider.
A simple, but pricy solution for most is the status quo, through COBRA coverage. Most laid-off individuals can keep their existing coverage for up to 18 additional months, but they pay the entire fee (including the amount covered by the former employer). While this can often quadruple a person’s cost of insurance, the recent economic stimulus package provides subsidies that can bring the amount down considerably.
If you’re below 50 and in good health, private insurance may be a more affordable option. In this circumstance it’s critical to comparison shop, but not just for price. Examine specific policies for exclusions (for conditions such as pregnancies), coverage limits for specific procedures and high co-pays. If you or a family member have specific health concerns, you’ll want to have a policy that covers as much of the condition’s care as possible.
Within private options, young and healthy clients might also consider high deductible plans. You’re taking lower payments and guaranteed overall protection and risking the possibility of paying thousands of dollars in the event you file a major claim. Short-term policies are another viable option if you are virtually certain to have coverage through another means within the near future.
For people who have pre-existing conditions or no COBRA options, there also Guaranted Issued policies ... usually expensive, but far better than the option of no coverage. State Insurance Regulators can provide a list of insurers that prove GI coverage. They’re also a great place to begin the search for non-COBRA options and information about other benefits and rights that may be available to unemployed workers and their families. To get more information about insurance visit Kiplinger.com here and for state-specific information, click on the “State Insurance Regulators” box.