Dealing with a job loss can be stressful, with many unanswered questions about where to turn and what to do next. However, one of the first and most constructive things you can do for yourself and your family is make sure that you have your health insurance in order, and that there will be no gaps in coverage that would leave you vulnerable to high medical bills and reduced medical coverage in the coming months.
How long can I keep my employee health insurance after termination?
Because of COBRA (Consolidated Omnibus Budget Reconciliation Act), a 1986 legislation that allows certain employees who have lost their jobs to extend their existing coverage, you may be able to stay on your current health plan for up to 18 months after termination. This ensures no break in coverage for you or your dependent family members, as you seek out new employment or an alternate provider. The downside to COBRA is that you will have to pay all of the premiums yourself, instead of sharing the cost with your former employer, but as a stopgap solution it can be an appealing choice.
What do I do if I cannot find another job with health coverage?
If you are having difficulty finding employment, or your new job does not offer health coverage there are other options out there for you and your family. You may wish to investigate whether you are eligible for other group coverage through religious organizations, unions, or alumni associations, which sometimes offer their members health coverage. These types of group coverage are often more expensive than plans offered through work because you do not have an employer to subsidize the policy, and will have to pay the full price.
Also, you may want to shop around for a private policy, through an individual market plan. It is in your best interest to look into these options and do a comparison against your COBRA coverage. These plans tend to be much more expensive than group plans, but if you are young and healthy you might be able to find one with competitive rates and coverage.
You may also wish to purchase short-term insurance, which is an inexpensive option which can bridge the gap between when one policy expires and when you can sign up for the next.
What if I cannot afford health insurance?
If your unemployment situation is causing financial difficulties, you may be able to qualify for public insurance programs such as Medicaid or other state-run programs, which can offer affordable subsidies to low-income individuals and their families. Also, there is currently a government subsidy program to pay 65% of your COBRA premium for part of the 18 months that COBRA is available, following a job loss. Another important resource for information regarding other low income programs is your state's unemployment office.
