Health Insurance Articles
How To Continue Health Insurance Benefits If Faced With Job Loss
2010-11-30
Health insurance benefits are essential for all Americans - working or not. Many workers will have coverage through their employer in the form of group insurance coverage, and some will choose to also purchase individual plans in order to cover their health insurance needs or "top up" their employer coverage. Unfortunately, circumstances can arise where a worker is faced with a job loss, and this can throw their protection under insurance into question. Many workers cannot afford to pay for health care coverage plans on their own, and are unable to obtain reasonable quotes from private health insurance companies. Two options for health insurance benefits are now available for those suffering from job loss.
One option for those who are in a position to lose their jobs is to consider taking advantage of the coverage under the COBRA legislation. This legislation allows for workers to maintain the same coverage levels they had with their employer, even if they have been laid off or the company has gone out of business. This coverage is available only for a year, but can be extended to eighteen months under certain circumstances. As well, the responsibility for the full premium price of the coverage will lie with the former employee - it will not be subsidized by the employer. In addition, this type of coverage will not work if an employee had been let go for gross misconduct or any type of fraud.
A second option for those who find themselves without coverage is to consider federally-funded health care. Currently, this option only exists in certain "high-risk" pools sponsored by states, but within the next few years the new health care legislation will create a system under which the federal government will run a public option to private healthcare. Meant to cover basics rather than referrals, this plan will low in cost but also include a minimum of service and likely come with a long wait time. Regardless, however, it is important that any worker, employed or not, remain covered for as long as possible. Once their insurance has lapsed, it will be difficult to get a good deal on future health insurance options, as the worker will be considered as having had no insurance for a period of time.
Being unemployed can be difficult, but this transition period can be made more so if an employee does not have any health care coverage to take care of them in case of an emergency. Both the COBRA legislation and the new health care laws offer options for those looking to continue their coverage after being laid off, and present viable alternatives to help keep American workers safe and sound.
