Today's difficult economic times are not likely to measurably improve in the next year. And many of those who are lucky enough to still have jobs are worried about what the future may bring. The potential for losing a job is bad enough, but losing health care benefits that go along with it makes the situation even worse. For most people, there are a variety of options available when unemployment becomes a reality.
The most commonly known option is COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act. Cobra went into effect in 1986, and basically it requires your former employer's insurance carrier to allow you to purchase out of your own pocket, your health benefits for an additional 18 months. If your employer was paying part of your premium, you'll be required to pay the entire amount, and that could potentially cause your insurance cost to increase.
Another option is what is known as temporary health insurance. This is designed specifically for short lapses of health care coverage while you're between jobs and not covered by an employer's plan. Policies frequently are written for a period of six months, and the cost is usually very reasonable. This option often works out to be less expensive than a COBRA plan, since many large companies pay a significant part of the employee's health premium.
Depending on certain considerations such as income and family situations, another option may be Medicaid or a low cost plan offered by your state. Many states offer sliding scale insurance coverage for families who otherwise would not be insured. Often children are eligible for free insurance coverage under the state as well. If you are unsure if you qualify, contact your state's Social Services department and they will be able to tell you what you qualify for.
Keeping your family insured through tough times is important. And being informed about your options in advance can take away the stress you'll likely be under when the time comes. Looking into what's available in advance can make a big difference. - 15224
The most commonly known option is COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act. Cobra went into effect in 1986, and basically it requires your former employer's insurance carrier to allow you to purchase out of your own pocket, your health benefits for an additional 18 months. If your employer was paying part of your premium, you'll be required to pay the entire amount, and that could potentially cause your insurance cost to increase.
Another option is what is known as temporary health insurance. This is designed specifically for short lapses of health care coverage while you're between jobs and not covered by an employer's plan. Policies frequently are written for a period of six months, and the cost is usually very reasonable. This option often works out to be less expensive than a COBRA plan, since many large companies pay a significant part of the employee's health premium.
Depending on certain considerations such as income and family situations, another option may be Medicaid or a low cost plan offered by your state. Many states offer sliding scale insurance coverage for families who otherwise would not be insured. Often children are eligible for free insurance coverage under the state as well. If you are unsure if you qualify, contact your state's Social Services department and they will be able to tell you what you qualify for.
Keeping your family insured through tough times is important. And being informed about your options in advance can take away the stress you'll likely be under when the time comes. Looking into what's available in advance can make a big difference. - 15224
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