Managing your health insurance is very important, especially in a lay-off environment or in reduced job hours’ situation.
COBRA as formed by the Consolidated Omnibus Budget Reconciliation Act of, 1986 can ease your woes of health insurance when you are jobless, but you pay for your own insurance plus a 2 per cent administrative fee.
The Congress incorporated a COBRA premium discount in the recent stimulus bill that provides a 65 per cent subsidy for nine months of coverage to individuals who became jobless during September 1, 2008 and May 31, 2010.
Notably, although you may afford the premiums, still COBRA plans can finish unexpectedly. In case your previous employer goes insolvent or ceases group health insurance plan, or you fall short to sustain your monthly premium fee, the insurer can terminate your plan. COBRA coverage beyond 18 months may end; the insurance company then must propose you an standalone health insurance policy.
Pre-Plan Your Health Insurance
It is highly recommended to initiate your health insurance search at least two months prior to your COBRA plan expiry, wherein you should demand for a copy of the policy to be aware of the terms and conditions.
You can seek assistance of your state insurance department to learn about companies offering health plans locally and which plan is the optimal one.
Opt for Low-Cost Plans
You can augment the cost pressures by selecting a plan having high deductible and lower premiums to cover you for a major infirmity or accident. Whilst the temporary health insurance, limited to a year or less, can be a better cover option as it shuns all pre-existing conditions.
You May opt for Individual Plans
Maine, Massachusetts, New Jersey, New York and Vermont are five states where premiums are set by regulators, so opting for individual health insurance plan shall not be an issue as you can avoid problematic pre-existing conditions.
Seeking the help and guidance from a special state high-risk pool or help from your state to pay for insurance may prove beneficial in case you are struck in a pre-existing condition or when your income woes prevent you from getting health insurance. Although you need to confirm that the state high-risk pool offer covers pre-existing conditions as well.
Reforms to Your Rescue
Given that it is not so easy to find suitable health insurance, starting in 2014, one stipulation of the Patient Protection and Affordable Care Act -- the healthcare reform law enacted in March 2010 -- will stop health insurers from discerning alongside subscribers with pre-existing conditions.
