Nearly two million Americans have lost their jobs over the last year: around 500,000 in the last couple of months alone. That’s a staggering number of people who have lost their livelihood, perhaps their sole source of income.

Among their worries is the question of what’s going to happen to the healthcare their employers provided. Families with young children, in particular, may find the doctor’s bills piling up, with no healthcare insurance to cover them.

According to the Kaiser Family Foundation, every 1% increase in the unemployment figure translates into another 1.1 million people who don’t have healthcare insurance. The national unemployment rate was at 6.7% in November 2008 – an additional 7 million people without that crucial insurance.

If you don’t have employer-provided healthcare, it’s likely you’re going to have to pay a significant amount of money for an individual plan – but the alternative, of having no coverage at all, is surely worse in the long run. If you’re in this position, what can you do about accessing affordable healthcare?

What are Your Healthcare Options?

• Under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) you’re entitled to have your employer healthcare benefits extended for 18 months after your job ends. However, your employer won’t be paying their share of the premium – so you’ll be looking at a significant increase in your premium costs.

To be eligible under COBRA, you must have been working at a company employing at least 20 people (some states extend eligibility to smaller companies), and have been enrolled in an employer-sponsored health plan when you were laid off.

• If you’re not eligible for COBRA, in most cases your only alternative is an individual health plan. Your costs for this will depend on your age, health, and location. If you’re older or have a pre-existing condition, you can expect to pay a hefty price for your insurance.

You may also find that you have fewer options than you did when you were eligible for employer healthcare, so it’s important to carefully review potential plans and check out whether things like prescriptions are covered.

• Government assistance may provide for your children, at least. In most states the Medicaid eligibility level for children is twice the poverty level (equating to around $42,000 for a family of four). However, it’s much stricter for adults – even an unemployment benefit may disqualify you.

• Some states also provide limited government assistance – this varies from state to state. In Florida, for example, the Medically Needy program provides help for participants after they’ve paid a certain amount in medical bills each month.

• For senior citizens and the disabled, Medicare may be an option.

photo credit: Mike Licht, NotionsCapital.com