5 Health Insurance Tips for Laid-Off Employees
With U.S. unemployment at a record 6.5% and layoffs continuing, the ranks of the uninsured will continue to grow. However, armed with statistics that nearly one-third of the current uninsured have government programs they are eligible for but don’t know it, Phil Lebherz, executive director of the nonprofit Foundation for Health Coverage Education (FHCE), advises “being laid off shouldn’t automatically mean you go without health coverage.”
The nonprofit health coverage think tank has come up with 5 steps people need to take in reviewing how they can hold on to their current coverage or transition to some form of gap coverage.
- COBRA. While this may be the most expensive option, it’s a good one
for someone with a pre-existing medical condition. For people recently
laid off, the first, immediate option to review is COBRA coverage. COBRA
is required of businesses with 20 or more employees. It provides
continuation of group health coverage that otherwise might be terminated.
One common myth about COBRA coverage is that it is only good for 18
months, but quite often this is not the case as it can be continued
indefinitely through state COBRA programs. First steps include checking
with the employer’s human resources department to receive complete
information on how to qualify for COBRA, the costs and how to apply. If
COBRA is an option, it should be carefully reviewed before being refused
as once it’s dismissed, it can’t be recalled. - High Deductible Plans. For healthy individuals, another cost effective
option while unemployed may be to purchase lower-cost high deductible
individual coverage. until new employment is found. With the exception
for New York, Massachusetts and Vermont, a person can obtain this
coverage for anywhere from $50 to $150 per month providing basic
catastrophic coverage with a high deductible until he or she becomes
eligible for the new employer’s plan. You can visit www.nahu.org for
a national listing of insurance brokers near you. - Going from a double- to a single-income family. For the family in a
two-income home where one parent has been laid off, checking into
programs like Healthy Families is an important step. In many states, a
family of 4 can make up to $60,000 (California, Connecticut, Hawaii,
Illinois, Indiana, Maryland, Massachusetts, Missouri, New Hampshire, New
Jersey, Pennsylvania, Tennessee, Vermont, Washington, D.C.) and in other
states up to $50,000 a year (Alabama, Georgia, Louisiana, New Mexico, New
York, Washington) and still qualify the children for comprehensive
coverage. These programs may provide low-cost health coverage for
children and teens up to age 19 including comprehensive health, dental
and vision coverage. Moving the family’s young dependents from
private insurance to government sponsored plans can reduce monthly
premiums and perhaps make a family’s adult private premium coverage
affordable. - Coverage for Pre-existing Conditions. For people who have been laid off
and must purchase individual health insurance but are unable to obtain
coverage due to a pre-existing condition, many states have government
sponsored medical risk insurance pools (such as California’s Major
Risk Medical Insurance Program). State residents who qualify for these
programs participate in the cost of their continued coverage by paying
premiums that are supplemented by the state. Go to your state’s
government website to find out what type of medical pool coverage may be
offered. - Help for Single Pregnant Women. For a single woman who is pregnant and
doesn’t make more than $25,900 in a year, there are maternity
programs state by state which will pay for the coverage of the baby
before, during and after the birth of the child into the first year. With
names like Access for Infants and Mothers, this often comprehensive
coverage provides low-cost or free health coverage for pregnant women
before, during and following the delivery of the baby and health coverage
for their newborn through the baby’s first year of life.
Credit: The Foundation for Health Coverage Education
The Foundation for Health Coverage Education is a non-profit organization based in San Jose, California. For more information, please visit the website at www.coverageforall.org.
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