Do you have health insurance for unemployment?
Millions of Americans lost their normal group health insurance benefits because they lost their jobs. What medical plan benefit alternatives do they have so they can be covered while looking for another job?
COBRA is actually NOT health insurance, but a federal law that helps many, but not all, ex-employees keep their group health insurance plan for several months after they lose their job.
This may be the right answer for many unemployed people because it does extend group coverage, but it doesn’t work for everybody. Here are some features of COBRA.
It does extend group plans, but the terminated employee must pay the entire bill. That means they have to pay the amount that their company used to contribute as well as their own contribution.
Many terminated employees are shcoked to find that their modest payment for their group plan goes up by hundreds of dollars as they have to pay the employee contribution too. It is not unusual to see the COBRA extension bill ranging up over #1,000 a month.
Some people, those with pregnancies in their families or pre-exiting medical conditions, should probably look into keeping this benefit even though it is expensive.
Should you keep it? It really depends upon your family’s situation.
Individual health insurance alternatives are marketed all over the US. These plans may be cheaper for many people, especially young and healthy people. Before you cancel your COBRA coverage make sure you can get accepted by an individual major medical insurance plan.
State high risk plans are out there for people with pre-existing conditions. In many states, though, they are expensive. The premium for the state plan may be 2 to 3 times as much as the premium a healthy individual has to pay. So this may not be a cheaper option, and you also have to be careful to make sure you qualify because not everybody does.
The federal children’s health insurance program (CHIPS) covers children from moderate to low income families. It is usually a very affordable option for familys who do not have group coverage on their kids, and who do not make a lot of money.
Make sure your family can qualify. You can research CHIPS in your state by searching for it on the internet. Every state should have a website with contact information, details, and even online applications.
Very low income families, who have used up their resources, may qualify for Medicaid. This federal plan covers people with few resources who have little money.
Again, the requirements to qualify are very strict, but it can be a life saver for people without income. It may be easier for children and senior citizens to qualify for.
Also, keep in mind that not every employee qualifies for a COBRA extension. Not every company has to exgtend the benefits either. You will be notified by your employer, or you can check with human resources.
The federal government may offer help so you can pay your COBRA bill. This information should come from your employer too.
