What to Do if You Lose Your Health Coverage?
According to recent figures released by the Bureau of Labor Statistics, 148,000 Americans lost their jobs in the financial sector alone. Regardless of the industry in which they work, many of those who have found themselves out of work as a result of the economic crisis haven’t only lost their jobs – they have also lost their healthcare.
What do you do if you find yourself in this position? It’s tempting to go without - it’s one more expense at a time when you can least afford it. But without healthcare coverage, you can’t afford to become sick or injured, either. So what are your healthcare and coverage options if you lose your job?
Are you Eligible for Coverage through COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) can be a good solution if you want to keep your employer-sponsored healthcare after your employment is terminated. However, there are some potential pitfalls to be aware of.
The most significant is that if you want to continue with your employer-sponsored healthcare, you’ll be paying not only your share of the cost, but your employer’s, too. Depending on your family status and other factors, you could end up having to pay three to four times the amount you’re used to.
Other potential problems involve eligibility requirements – COBRA is only available to employees of firms with twenty or more employees. Another future issue is that if the company is dissolved as a result of bankruptcy, COBRA protection may terminate automatically.
Other Coverage Options and Plans
If COBRA isn’t an option for you, it’s likely you’ll have to investigate individual health plans if you want some form of healthcare coverage. But if you do go this route it’s important to remember you have alternatives within this category.
- If you’re optimistic about your employment prospects, consider a short-term policy. Many carriers offer plans of one to six months, and some allow extensions when the initial period expires. However, most short-term plans don’t cover preventative healthcare, and deductibles tend to run high.
- Consider obtaining coverage through your spouse’s employer. Depending on company policy, you may or may not be eligible – if not, you may have to wait until the open enrollment period before you’re eligible for spousal coverage.
- Professional or membership organizations such as AARP can also provide healthcare coverage if you’re really stuck. But remember to investigate quotes thoroughly to make sure you’re getting a good deal.
photo credit: woodleywonderworks
