Losing job-based health coverage can be a stressful and uncertain time. Health insurance not only protects you from high medical costs, but it also provides peace of mind, knowing that if a health issue arises, you’re covered. If you recently lost your job and, with it, your health coverage, here are some steps to help you stay protected and explore your options.
Check for COBRA Coverage
What It Is: COBRA (Consolidated Omnibus Budget Reconciliation Act) allows employees and their families to keep their employer-sponsored health coverage for a limited time after losing a job.
Pros and Cons: COBRA lets you keep the exact plan you had with the same doctors and benefits. However, it's often expensive because you're responsible for the full premium, including the portion your employer used to cover.
How to Apply: Your employer should provide you with COBRA information after your job ends. You usually have 60 days to decide if you want to continue the coverage.
Look into the Health Insurance Marketplace
Affordable Care Act (ACA): Losing job-based coverage qualifies you for a Special Enrollment Period in the Health Insurance Marketplace. This means you don’t have to wait for the regular open enrollment period to sign up.
Subsidies and Discounts: Based on your income, you may qualify for subsidies that reduce the cost of monthly premiums and out-of-pocket expenses.
Plans Available: Marketplace plans come in different coverage levels, so you can pick one that fits your health needs and budget. Visit HealthCare.gov to see what’s available in your area and explore your options.
Consider Medicaid or CHIP
Medicaid: If your income is currently limited, Medicaid may be a good option. Eligibility varies by state, but it’s generally based on income, family size, and other factors.
Children’s Health Insurance Program (CHIP): If you have children, they may be eligible for CHIP, which provides low-cost health coverage for kids in families that earn too much for Medicaid but not enough for other health insurance options.
Where to Apply: You can apply for Medicaid or CHIP through the Health Insurance Marketplace or directly through your state’s Medicaid office.
Explore Short-Term Health Insurance
What It Covers: Short-term health plans can provide temporary coverage for a few months. They are typically less expensive but have more limited benefits than traditional insurance and might not cover pre-existing conditions.
When It’s Useful: If you’re between jobs and expect to regain employer-sponsored coverage soon, a short-term plan can offer some protection from unexpected medical costs.
Things to Consider: These plans often have higher deductibles and fewer benefits, so review the policy details carefully to ensure it covers your essential needs.
Look for Local Resources
Many non-profits and local organizations provide assistance for those going through health insurance changes. Organizations like the United Way, community health centers, and state health departments can offer resources, advice, and in some cases, assistance in covering medical costs.
Health Sharing Plans as an Alternative
What It Is: Health sharing plans are community-based programs where members share each other’s medical expenses. These are not insurance but can be a temporary solution for some.
Benefits and Drawbacks: They may have religious or lifestyle requirements and can be less expensive. However, they don’t cover everything, and there are limits on pre-existing conditions and certain types of care.
Tips for Managing Health Costs Without Insurance
Look for Community Clinics: Some clinics offer healthcare services on a sliding scale based on your income.
Shop Around for Prescription Medications: Apps like GoodRx can help you find discounts on prescription drugs. Many pharmacies offer generic medication discounts, which can help reduce costs.
Be Proactive with Preventive Care: Taking preventive measures, such as healthy eating and exercise, can help reduce the likelihood of needing expensive medical treatments.
Losing your job-based health coverage is a challenge, but there are options to keep yourself protected during this transition. Taking time to review your choices and make an informed decision can help you maintain peace of mind and keep your health secure.
