How to Handle Health Insurance if You Lose Your Job
Most self-employed people have been aware of how inefficient and costly the health insurance system is. But the majority of U.S. citizens haven't been as exposed since employers have been handling many of the issues. In more recent years a number of companies, especially smaller ones, have started passing on some of the costs to keep themselves from being destroyed by rising prices. Now with layoffs increasing a lot of people are looking at losing their health care coverage altogether when they find out how prohibitive the full cost is.
- Difficulty:
- Moderately Easy
Instructions
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Although the temptation is to do without health insurance with all the other concerns about job loss, try trimming everywhere else before you think about dropping health insurance. You don't have to be old to have accidents or get ill. And the costs of care are enough to ruin a life even if the physical problem is healed. These risks are compounded by each family member you have.
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2
If you are losing your job and health care coverage, first find out if you qualify for coverage under COBRA. COBRA is the Consolidated Omnibus Budget Reconciliation Act the government enacted in 1986. It gives certain former employees a temporary plan for health insurance coverage. Unfortunately, even COBRA is not cheap and not all ex-employees qualify.
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Also check into union and state programs that may be offered in your specific industry. There are some that will offer health insurance help. Some insurers also offer a 'gap' insurance for people who expect to be re-employed in the not-too-distant future.
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Sit down and outline your needs and those of your family. Research the offerings of different companies, and consider what are absolute essentials. Crunch some numbers and see what will realistically fit into your budget. You may need to take a high deductible and pray there are few medical expenses in your future, but at least make sure you end up with sufficient catastrophic coverage.
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There are lots of articles on how to choose a health insurance plan, so I will simply refer this information in the references below. Study and research. You will probably find something to help tide you over until you are again gainfully employed.
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Hopefully, there will be some big changes in the future in the health care industry. It is very overdue. But for those who have to deal with these expensive decisions now, the future will have to wait. Try not to get discouraged and keep asking questions. You'll probably find something that will keep you safe until things improve. So, again, try to make sure you don't drop all your health coverage. You need to stay strong and healthy to work for your next job -- whenever it comes!
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