Other health insurance for unemployed alternatives
March 2nd, 2010One of the benefits of holding a job in a large company is getting a good health insurance plan. But sadly, when you lose your job, you also lose your group health insurance. Don’t fret, though. There are many plans that offer health insurance for unemployed, which you can consider. Options such as COBRA, public programs and even individual health plans are all affordable options if you’re unemployed. Read on to compare health insurance plans specifically for the unemployed and pick the best one for you.
1. COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985). This law allows you to continue with the group health insurance you had with your former employer. COBRA can cover your for a limited period, only, though. But that will give you enough time to find a new job or shop for other health insurance for unemployed. COBRA premiums are more expensive than your regular group health insurance. Because of this, it’s advised that you weigh the pros and cons of COBRA first before applying for it.
2. Your spouse’s group health insurance. Your spouse probably has his own employer group insurance. You can be added as a dependant to this, if you lose your job. You have to apply for it quickly, though, to take advantage of it. Often, a spouse’s group insurance has a wide coverage, including pre-existing medical conditions. But like COBRA, the premiums are expensive. It might be wise to other compare health insurance plans first before taking this option.
3. Short-term health insurance. This is sometimes referred to as temporary insurance. This type of health insurance for the unemployed can guarantee coverage from 1 to 36 months. Short-term health insurance is a popular option since it’s less expensive than COBRA. Its affordable price tag has a trade-off, though. Short-term health insurance doesn’t cover pre-existing medical conditions. Federal subsidy cannot be applied here as well.
4. Public programs. Different states offer programs and health insurance for low-income earners or the unemployed. You can ask around for the requirements of eligibility for this type of insurance in your state. Usually, it is based on age, residency, income, medical condition and previous health plan options. This type of health insurance for the unemployed costs very little. Some people don’t have to pay, if the are eligible for a no-cost plan. Application is a long process, though. Be prepared to wait long lines and to fill out a lot of forms.
5. Private market insurance or individual health plan. If you live a healthy lifestyle and are still young, you might want to get this type of health plan. Because you are still at the prime of your health, premium for individual plans are still affordable. It’s best to compare health insurance plans before deciding on one. Look at the different benefits and see if you can afford an individual plan.
Unemployment shouldn’t be the end of the world. Nor should it be the end of your health plan. There are many different health insurance for unemployed that you can consider. Shop around and compare health insurance plans. Options such as COBRA, short-term health plans and public programs make it affordable for you to secure medical coverage even when unemployed.
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