Being Unemployed Can Still Offer Health Insurance Options
Tuesday, January 6th, 2009With the economy in dire straits and unemployment rates skyrocketing, many of us are justifiably worried about the next year. With more people losing jobs every day, many of those who still have jobs are being forced to consider the real possibility of losing their jobs in the future. And along with the loss of the job, the added benefit of health insurance will likely go away also. The circumstance of being out of work and without health insurance is not one anybody is likely to look forward to. There are options available, however, for those who are facing possible unemployment.
COBRA is the plan most have heard of. Since COBRA went into effect in 1986, millions of unemployed have been able to continue their health coverage for up to 18 months after the employment terminated. You will have to pay the entire premium, though, and this may cause your monthly insurance costs to go up if your employer was formerly paying part of it. But if you have pre-existing conditions, this still is an excellent option.
A second, less known about option is that of what is known as temporary health insurance. This insurance is specifically designed to insure you in between jobs or during lapses in health insurance. It is usually relatively reasonable to carry and can help cover you until you can pick up a more permanent health insurance policy. Many people find that this option is actually less expensive than their COBRA plan, since many large companies have good insurance plans and absorb a lot of the costs for their employees, there can be a significant change in your out of pocket expenses when you begin paying the premiums through COBRA.
There is a third option to consider, depending on your financial and family situations and the region of the country in which you live. That is Medicaid, or some sort of low cost insurance plan offered by your state. In order to meet the demands of a growing uninsured working population, many states are offering sliding scale insurance coverage for low to middle income families who do not have any insurance, and sometimes if you have kids, they may be eligible for free insurance through the state. Most of this information can be accessed by contacting the Social Services organization in your area. They should be able to tell you what if any health insurance programs you may be eligible for.
Knowing the facts about your options can make all the difference, and investigating the options in advance can not only save you money, but can also help keep your family insured through the tough times.