The majority of Americans get employer-sponsored health insurance. It’s the most prevalent way to get medical coverage. However, losing a job can put an individual in a difficult situation as they’ll also lose their employer’s coverage. The good news is that diverse options are available to those who are out of work and need health insurance.
For a bit of help, we’ll walk you through the viable solutions.
Private Insurance Marketplaces
You can purchase health insurance plans through private marketplaces. Although the coverage may not be as favorable as policies on the ACA or Affordable Care Act marketplace, at the least, you will have something for emergencies.
You can visit various websites and compare medical insurance plans available to you. You might just find affordable options to make cutbacks on your healthcare costs.
The health insurance plans and premiums will differ based on your age and where you live. It’s crucial to note that the price quoted on these websites is the lowest possible for that plan and presumes that you’re in perfect health. You won’t know what to pay until you apply on their website and provide your medical history.
Continuous of Health Coverage (COBRA)
COBRA, also known as continuation coverage, allows eligible individuals who lost their jobs to extend or stretch out the term of their employer-based health insurance plan. These individuals will probably pay more for their coverage through COBRA, but it’ll be more affordable than an individual health insurance plan would be.
Employees qualify for this coverage as a result of the following:
- Involuntary or voluntary job loss
- A significant reduction in work hours leads to the loss of employer insurance coverage.
COBRA bylaws offer health insurance coverage similar to the employer’s for eligible individuals. They are given sixty days to decide whether or not to choose continuation coverage. Even if they forfeit, they can revise their decision as long as it’s within the sixty-day election period.
Health Insurance Marketplace
Unemployed individuals can find health insurance coverage through the federal government’s marketplace. Open enrollment is generally set from November 1 through January 15. If you enroll by December 15, the coverage will start on January 1.
On the other hand, if you enroll by January 15, the coverage will start on February 1. If you miss this period due to a qualifying life event, worry not! There’s still a Special Enrollment Period that allows you to enroll.
You can apply in person, by phone, or online. If you need assistance applying, you can work with in-person assistance personnel, a certified application counselor, or a marketplace navigator.
Moreover, depending on your eligibility for other coverage and income, you may qualify for premium tax credits. This subsidy can help you save money on your monthly insurance payment.
Join Your Spouse’s Health Insurance
If your partner offers coverage to employees’ dependents, getting included in their health plan can be a solution. All you have to do is cancel your current coverage and switch to your spouse’s policy during open enrollment.
Ensure that your spouse’s health insurance policy meets your needs regarding available providers and covered services. You should also ensure your partner’s policy follows the same plan year to avoid a coverage gap.
Switching your coverage to your spouse’s policy can be challenging if you enroll outside the enrollment period. Your coverage could be turned down until the open enrollment period starts again.
But there are also Special Enrollment Periods. They trigger during certain life events like:
- Loss of coverage due to job loss
- Changes in household size
- Change in your residence
- When a spouse’s company stops paying for contributions
If you qualify for a special enrollment period, you must show documentation of your change in circumstances. It’s essential to fulfill this process as fast as possible. Otherwise, your health plan selection might get canceled. But you can reapply if your qualifying event was sixty days ago. Hence, don’t delay.
Health Savings Account (HSA)
This tax-advantaged account is set up by or for eligible individuals to save for medical expenses, such as prescription drugs, vision care, and dental expenses. Coverage contributions are made into the individual’s account and are limited to at least a year.
Eligible people are someone who:
- Have no other coverage
- Have a qualified high-deductible health plan (HDHP)
- Is not dependent on someone else’s coverage
- Is not enrolled in Medicare
Here’s how a health savings account works: You purchase a high-deductible insurance plan and open an account to set up a cash cushion for medical emergencies. So, if there are any emergencies, you can pay for them with your HSA.
Moreover, HSAs come with tax protections, provided you use them for medical emergencies:
- Contributions
- The growth and earnings of your contributions
- Withdrawals
Takeaway
With rising healthcare costs, unemployed Americans are in dire straits to afford medical care. There’s no perfect solution for health insurance. As such, investigate as many options as possible and find the one that financially suits you.
