When you're laid off from work, you typically lose your benefits package. Instead of putting off essential treatment or facing financial hardship because of your medical bills, consider several options that assist you in keeping important medical coverage when you're laid off.
Sign up for COBRA
If you quality for COBRA (Consolidated Omnibus Budget Reconciliation Act), you'll receive a letter from your employer. You have 60 days to enroll, and it's effective for up to 18 months. With COBRA, you keep the same coverage as you had when you were employed, but you'll pay the full premium and possibly a two percent administrative fee.
Join Your Spouse or Partner's Health Insurance Plan
If your spouse or partner has health insurance through his or her job, ask if you can be added to that policy. Many companies offer an enrollment grace period for laid-off spouses or partners, but you'll need to apply within 30 days of your layoff.
Buy Short-Term Health Insurance Coverage
Also known as gap or temporary insurance, short-term health insurance lasts for six months to one year. These plans typically cover emergency care or medication you need for an acute medical condition, not routine care or treatment for pre-existing conditions. You also may be unable to renew your coverage, but it's an option if you're healthy, expect to find another job soon or can buy regular health insurance when the short-term coverage ends.
Investigate Private Health Insurance
A variety of companies offer private health insurance. You can enroll online or in-person at a local insurance agent's office. Be sure to compare several packages to get the one that fits your needs and budget.
Check with the organizations you belong to, too. Professional, trade, college and religious groups may provide discounted health insurance for members.
Apply for Affordable Care Act Coverage
Since you no longer have health coverage from your employer, you can apply for Affordable Care Act coverage from the federal government. Based on your income, you could receive health insurance at a reduced cost. The application is available at healthcare.gov.
Pursue Low-Cost or Free Options
Because your income may have dropped after your lay off, check into programs that offer low-cost or free health insurance. You can apply for medical assistance through the Department of Public Welfare, and CHIP may cover your kids. Free neighborhood clinics also provide treatment at no cost to you.
Even though you are laid off from your job, you can still have health insurance coverage. Research your options. Additionally, take care of your health as you reduce the risk of illness or injury. For additional assistance, contact your insurance agent.