Health insurance requires a steady stream of income. If you have lost your job and find yourself standing in the unemployment line, you’re not alone. Due to the state of the economy thousands are becoming unemployed, and frankly the last thing on your mind is health insurance, but it needs to be something you should think about.
Most insurance companies and their policies are issued through employers, therefore when people lose their job they are at a severe disadvantage when it comes to finding the right and affordable healthcare. If you have gotten your previous insurance from your employer you may know that the costs are greatly reduced, but should you find yourself unemployed the costs that you may come to will be very high. Private health care insurance plans will charge you a higher premium and will also charge you more for preventive care. Without health insurance, you are subject to outrageous medical bills, and you have to pay full price for your prescriptions, and also upfront doctor visits. Unpaid medical bills make your credit look horrible, so if you are unemployed you should search for an affordable insurance.
The federal government has a number of different ways to help you, they have so-called “private carriers”, who help the unemployed find insurance for their family, but this is only temporary. As soon as you get laid off, or terminated you should contact one of these agencies. In order to find one you should look up your states unemployment insurance plans.
The government also has a program called COBRA or Consolidated Omnibus Budget Reconciliation Act of 1986. COBRA is for employees who have been laid off from their previous employer. With COBRA, the unemployed person is given a chance to still reap the benefits of their previous insurance, but for a period of time. Beware since this insurance is not going to be the same price as it was when you were employed, but it does give you an option. The average cost to a family that uses COBRA is around seven hundred dollars a month. If you are thinking of using COBRA, there are certain eligibility requirements that you must meet. You have to have resigned less than 60 days, your employment with the company had to be terminated but not for misconduct, and even if you quit voluntarily you may still be eligible for COBRA. Although expensive COBRA is an excellent way to avoid applying for other insurance companies, it may not save you money but it will save you time.
Short term insurance is for those who are unemployed or ones who just graduated college and are looking for health insurance but just for a short period of time. Short term insurance is not for everyday colds, most short term insurance plans are for emergency only, but for the unemployed who are making the transition between jobs this is a great option until they decide on a long term policy. Short term polices are usually made for six months. With short term insurance you get same day approval and very low monthly costs. Short term polices are one third the price of COBRA, or any other health insurance plan, and for the unemployed it is a great option.
If you were laid off from work, and struggling to pay your day to day bills, water, heat, car, house, you could also try Medicaid, for low income families. Health insurance plans are expensive, but if you were laid off and do not get the proper insurance coverage, should an accident happen or you are stricken with an illness it is fully your responsibility to pay any bills that you acquire. On the other hand, if you are an older individual looking toward retirement, COBRA may be the best option, especially if you have a saving account through your company and can afford to pay the monthly premiums. The older are more likely to need medical attention, for things such as diabetes, or COPD in which you have to continue medical treatment, prescriptions etc.
With COBRA the elderly reaching retirement can keep their current doctors, specialists, and prescription plans. The premium may be a lot more than your liking but if you have enough funds to pay it then it is the best deal. If you are unemployed, the last thing on your mind is health insurance, and it is understandable why. You have to worry about your other bills and how you are going to pay them, not to mention coping with the fact that you have been laid off, or terminated. If you qualify for unemployment take it, although it may not be as much as you are used to making, it will help make ends meet, but health insurance is a must, especially if you have children.
The bottom line is for the unemployed there are a number of different options that you can use, there is COBRA, the expensive option, short term mainly for single individuals, and last of all Medicaid if you are struggling to make ends meet.