How to Keep Health Insurance After Losing Your Job
One of the worst problems of losing a job is having to deal with health insurance. Fortunately, you have several options, although there is a trade-off between quality and price. Here’s a look at what you can do.
Option 1: How to sign up for an Obamacare health plan
A bronze plan may have high medical fees, but it will protect you from unexpected high cost scenarios that could ruin you financially. Even though this is the lowest tier plan, it can be very expensive, ranging from $ 200 to $ 400 per month; however, the good news is that people with incomes up to 600% of the poverty line (up to $ 76,560 per person) may be eligible for a subsidy that covers all or part of the cost of your monthly premium. This calculator will help you calculate your estimate.
To purchase a plan, start at healthcare.gov , even if you live in a state that has its own exchange. Click get coverage, select your state and it will direct you to the right place.
Option 2: How to subscribe to COBRA coverage
If you like the coverage you already received from your now former employer, you can stay in that plan by participating in the federal Consolidated General Budget Reconciliation Act program, better known as COBRA.
The program allows you to stay in your employer’s health plan for up to 18 months after you leave your job. However, there is one catch: you have to pay the full premium yourself, plus a small administration fee. This can cost you hundreds of dollars as employers pay about 80% of your premiums , which is a high cost for most people.
To register, your employer or health insurance company must send you a notice of eligibility after your job ends. If you expected it but haven’t received it yet, contact your company’s HR department or health insurer directly. However, once you receive notice of your eligibility for COBRA, you will need to register within 60 days .
Option 3: How to join a family member’s plan
Because losing your coverage is a qualifying event, you have 30 days from the end of your coverage to enroll in a spouse or family member’s plan. It may even be a better option than the ones listed above, depending on the cost and coverage of your family member’s insurance. If everything works out, you may want to stay on someone’s insurance even after you start a new job.
Option 4: How to Apply for Medicaid Insurance
Medicaid is government health insurance designed for people with limited incomes ( typically less than $ 2,382 in 2021). Unlike Obamacare plans, which are operated by private companies, patients usually do not pay for covered medical expenses and in some cases include retroactive coverage . However, plans vary by state – you will have to use this Healthcare.gov calculator to see if you qualify.