Losing one’s job can be a cataclysmic event for so many reasons. A primary source of stress comes from trepidation about where to find affordable health insurance coverage for yourself and your family.
There are a multitude of options available should you lose your job or employer-provided health insurance, and you can save yourself a lot of money and headaches over the long run if you choose wisely.
1. COBRA. Otherwise known as the Consolidated Omnibus Budget Reconciliation Act, this federal law became enacted in 1986 and provides continuation coverage on an existing employers group health plan for 18 or 36 months after a job loss or life event. If your employer has 20 or more employees, it falls under the federal umbrella and lasts 18 months. If not, many states have mini-COBRA plans that are handled by state-authorized insurance agencies and provide coverage up to 36 months. Now that the presidential extension of government subsidies has expired, however, many families cannot afford the expensive premiums.
For more, read what your COBRA PLAN covers.
2. Short-term medical plan. This kind of health insurance protects you in the event of an unexpected illness or injury, and is designed to provide protection as you transition between jobs or life situations. A life situation can range from losing your job to becoming newly divorced and no longer eligible under your former spouse’s group health plan. It’s cheaper than traditional health insurance, and doesn’t limit you (or your eligible dependents) to a specific network of doctors. But as the name indicates, however, it provides only brief medial coverage and you aren’t guaranteed renewal after the initial term expires. It is also difficult to get if you are over 65 years. Short-term medical plans do not cover vision, dental or maternity expenses.
