Health Coverage While Unemployed You
can find COBRA Alternatives such as short-term medical coverage (6
month period) at eHealthinsurance
which is an excellent sources of free short-term medical coverage
quotes for individuals and families. They partner with a variety
of different carriers so you may be able to compare more options
by getting quotes and comparisons from both sources. If
you're looking to compare quotes on standard health insurance coverage
options, then we recommend InsureMe.
They will give you several quotes from up to five insurers. If you
are considering adding yourself to the growing group of the self-employed,
then you may want to consider opening a tax deductible Health Savings
Account (HSA) coupled to a High Deductible Health Insurance Plan.
See our other articles on this topic for more information on these
plans:
COBRA
Alternatives While Unemployed
by Tony Novak
A key decision that millions of Americans face each year is whether
to elect "COBRA" “HIPAA” or “COBRA alternative” health care continuation
coverage when they lose employer-provided health coverage. About two
thirds of all Americans are covered by employer-provided health coverage
but with the recent increase in layoffs across the country, the number
of workers losing these employer-provided health benefits is at a
record level. Workers typically have three or more options available
and the cost can vary dramatically between the various choices available.
Some may opt to take no health insurance coverage and bear the financial
risk themselves. In order to make the best decision, they need to
know about two laws, COBRA and HIPAA.
COBRA Employers who have over 20 employees and offer group health
coverage are required to offer continued coverage to their workers,
former workers or dependents who lose eligibility for the group health
plan. This benefit does not apply if the health plan withdrawals coverage
or if the employer terminates the group health plan before the worker
is enrolled under the COBRA benefit. When workers lose health insurance
coverage, COBRA is usually not the best solution unless the employee
or a dependent is in the middle of a course of medical treatment because
this is the most expensive health coverage option. But in some cases,
for example, if a worker has serious medical conditions or the worker’s
spouse is pregnant, COBRA coverage may be desirable.
HIPAA Most group health plans offer members the right to convert to
a variety of individual plans while preserving continuation of coverage
benefit. In many cases you may also change to another insurance plan
in your local market by providing evidence that you were covered by
a prior health plan. For “preferred risk” applicants, changing insurance
plans can result in significant savings, but this will generally will
not be an appealing option for those with significant pre-existing
conditions.
COBRA ALTERNATIVES For the majority of healthy workers who just want
to be protected from unforeseen medical expense until they land another
job, short
term medical coverage is the best answer. This coverage is issued
online within minutes, covers all ordinary any necessary medical treatment
from any medical provider in the United States and requires no referrals.
The cost of this coverage is less than 1/2 of the price of COBRA plans.
The two downsides are that this coverage does not cover pre-existing
conditions and you must re-enroll after 6 months.
ELECTING NO COVERAGE Individuals in some states may wisely elect to
keep no health coverage while unemployed with the knowledge that they
can join a health plan at any time, even after they are receiving
medical treatments, and have all of their medical expenses for pre-existing
medical conditions covered by the new plan. Three of these states
are New Jersey, New York and Vermont. The negative is that this type
of health coverage, if needed, is ridiculously expensive. Some plans
in these states run more than $2000 per month for family coverage.
RESOURCES IRS Notice 98-12 provides this information in the form of
questions and answers. The IRS publication on this subject can be
found at http://ftp.irs.ustreas.gov/pub/irs-drop/n-98-12.pdf
About the author:
Tony Novak, MBA, MT is a writer and financial adviser in Narberth,
PA. His businesses MedSave.com
and Freedom Benefits Association provide onine benefits enrollment
and planning advice to individuals and businesses in 47 states. Www.MedSave.com
offers online enrollment for short term medical insurance nationwide
and professional enrollment support by telephone at (877)-529-7435.
10 Facts About Health Savings
Accounts (HSA's)
Return to http://www.best-insurance-deals.net/
Home/ Contact Us/ Links/ Site Map/ Privacy/