What To Do About Your Health Insurance When You Get Laid Off

The major concerns of people laid off from their jobs are finding another job, feeding themselves and their family and paying bills. However, another primary concern is that of continuing health insurance coverage.

Here are some tips on what to do about your health insurance when you get laid off:

COBRA. If you are living in the States, after you are laid off, you are entitled by law to get insurance under COBRA for 18 months. COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act of 1985, offers a chance for health care and life insurance for the unemployed.  Qualified beneficiaries for a reduction of payments are those laid off between September 1, 2008 and December 31, 2009. Dependents of these employees also benefit from these provisions.  

The employer may contribute 65 percent of the premium cost, so that the beneficiary would only contribute 35 percent. This employer contribution would apply for the first nine months of the COBRA coverage. The employer can increase the employee share of the premium after this period. Moreover, if the qualified beneficiary would be eligible for coverage under another health group plan or Medicare, the employer contribution would be terminated. Subsidized portions of the premium are expected either to be credited or to be used within 180 days. COBRA is available only if you worked for a company with more than 20 members. The idea of COBRA is that you save on another group plan. If your company offers COBRA, do not hesitate to sign up.

Take advantage of any available plans. While the company is still paying for your health insurance, take advantage. Try to avail yourself of all the possible services that you can get from your health insurance company. You have to know your insurance rights and privileges as an individual.

Use your spouse’s plan.  Obviously, this is not applicable to everyone. However, some insurance companies allow this option. This allows you to continue your health benefits for a period of time until you get a new job.

Individual insurance. Shopping for a new insurance policy is like buying a new car, only a bit more confusing. The best option here is to start looking for a new health insurance plan as soon as you lose your job. The Internet is a very powerful tool in finding a new insurance company. Try to go to different insurance company websites and see what best suits you. Make a list of coverage options that are important to you. Look for four things: how much the premiums are, what the policy may cover, what it will exclude and how much a doctor's visit is.

State-sponsored plans. You may be eligible for a state insurance plan. Under the federal law, every state must provide these plans for this kind of event. Every state also has a low-cost insurance plan for children. You do not have to have a low income to qualify for this insurance plan. All you have to do is inquire and research for the qualifications needed for available state-sponsored plans.


Share this article!

Follow us!

Find more helpful articles: