How to Keep Health Insurance After Losing Your Job
Losing a job is very stressful. One of the benefits that you are likely to lose is health insurance. All the employers are required to deduct some money from salary and pay for employees’ health coverage. In the event you are laid off, it is vital to deal with the insurance issue right away.
The first option that you have to deal with the issue is maintaining the employer’s coverage. COBRA health insurance provides the people who have lost their job a chance to continue with the employer insurance at their own cost. The premium is usually higher than usual, but it very helpful as it is the only option that you have before you apply for another insurance or get another job. The insurance will cover you for a maximum of 18 months. To qualify for the coverage, you must apply within 60 days after losing the job. Also, you must have been working in a company that has not less than 20 employees.
While you are working, the employer contributes half of the premium while you contribute the rest. For the COBRA health insurance, you will be paying the money you used to plus that of the employer. You will also be charged a merger administration fee. There are different rates for COBRA insurance.
Another option that you have is aa short-term health plan. These are insurance that is for a limited time. Most of the programs cover you one year and can be renewed for a maximum of two times. The time limit of the short-term health loan varies from one state to another. the main benefit of this kind of coverage is that it is very cheap. However, it does not cover many health issues. It is going to bridge the gaps before you find a job.
Another alternative that you have is shopping around for health insurance. Many insurances will provide you with different plans to cover for your protection. You can choose the plan that suits your pocket. Their cost tends to be lower than employer health insurance. The problem with them is that they are not like to cover preexisting conditions; in such a situation, they tend to be more expensive.
If your spouse is working, you can benefit from their insurance. They must be working in a company that offered health insurance. Most of the insurance covered the entire family. However, you must be quick to apply for your protection because the enrolment may not last for a long time.