Unfortunately, the reality of losing health insurance is an all too common situation in today’s economy. If your position has been eliminated or if the company is going under, your job isn’t the only thing you may face losing.
Employer-based health insurance benefits are a very important aspect of many individuals’ employments, and living without them, even for a short period of time, can be devastating for most families. From expensive prescription medications to emergency care and doctors’ visits, employer-based health insurance is not a luxury, it is a necessity.
However, if you find yourself on the verge of losing your employer-based health insurance, there are a number of options you may have:
- COBRA - Larger companies of more than 20 employees, under a federal law, are required to offer you an extension on your health insurance of 18 months while you look for other employment. Called COBRA (Consolidated Omnibus Budget Recognition Act), this health insurance extension must be enrolled in no longer than 60 days after you lose your health insurance. Although you will enjoy the same benefits that you did under your employer health insurance plan, the costs will be significantly higher.
- You spouse’s health insurance - For many individuals, it just makes sense to sign up for their spouse’s health insurance when they lose their coverage. Luckily, most large companies will bypass the annual enrollment time period to allow you to sign up for your spouse’s health insurance if you lose your coverage.
- Private health insurance - For many individuals, purchasing private health insurance is often less expensive than purchasing COBRA, so you may want to consider contacting a reputable insurer and ask them for their private health insurance costs.
- Free or lost-cost programs - If money is an issue, you may want to consider some of the free or lost-cost health insurance options. You can check with your state’s Department of Health regarding free health insurance for your children; you can also check with your state’s insurance department or consumer services department to see if your state offers lost-cost health insurance.
