How to Get Unemployed Group Health Insurance

One of the greatest dilemmas facing individuals who lose their jobs is the loss of the group health insurance plan. The plan often carries the spouse and dependents. In order to retain full coverage, options are available subject to individual state regulations and HIPAA standards.

Instructions

Plan to Get Coverage

1. Contact the human resources department or the person who handles employee benefits to determine eligibility to get group coverage if you become unemployed. You may be covered by a policy that allows you to convert the group policy to an individual policy with no loss of benefits. It will be a higher premium than the group policy.

2. Enroll in COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA provides the same coverage for unemployed individuals that was included in their group policy. It is more expensive than the group plan, and it has limits on the length of time for which coverage can be provided.

3. Check with your State Department of Insurance to determine if there is a state continuation insurance for the unemployed. The state continuation insurance is a group health plan available only to unemployed individuals of companies with less than 20 employees.

4. Explore the possibility of obtaining job loss insurance as stated in the Health Insurance Portability and Accountability Act (HIPAA). The criteria set forth by the State Department of Insurance must be met before an individual can get coverage.

5. Contact the Medicaid office in your state to determine if you qualify for group healthcare benefits. The criteria for low-income unemployed individuals varies from state to state.

6. Expect COBRA to be available in most states for 18 months of unemployment. Some states and conditions qualify members for as much as 36 to 42 months.

7. Inquire about coverage from your employer as soon as you become unemployed. There are time limits if you wish to apply for COBRA or transfer to an individual policy with the same insurance provider without any waiting period. The options for insurance coverage are reduced considerably if the only possibility is an individual plan without the transfer.

8. Expand your search for health insurance when you become unemployed. Fill out an inquiry online to make a cost-and-benefit comparison of plans with the options available through your ex-employer.

Tips & Warnings

• COBRA rights may not apply in companies with fewer than 20 employees.

• Losing your employment for reasons such as misconduct may eliminate your option for continued group insurance coverage.