Health Insurance for the Unemployed
With today’s economy the way it is, we have seen the number of unemployed persons rise significantly over the last few years. According to the US Bureau of Labor Statistics, the national unemployment rate reached 10% in the final quarter of 2009. This, in turn, has resulted in a higher percentage of families that do not carry adequate health insurance (United States Department of Labor, 2010).
Being without work is hard enough without having to worry about the high cost of medical care. This article will discuss the dangers of being uninsured and offers some direction in the options you have to protect your family, if accident or illness come knocking. It is important to understand that unemployed does not have to equal being uninsured or underinsured.
Harms of Being UninsuredPreventative care is one of the largest areas that suffer due to unemployment. Yearly exams and routine immunizations like flu shots are often overlooked as luxuries instead of necessities when money is tight. However, early detection of disease and preventing dangerous bouts of the flu is sometimes the difference between life and death.
Let’s face it. Medical bills can be daunting and the cost of healthcare in growing. Without the assistance of insurance providers, the smallest procedure can oft times be significant enough to take food off the table. Don’t let that happen to you. Find out the options available and take advantage of the programs that will help to keep you and your family safe.
Health Care Options for the UnemployedDon’t give up. Medical insurance is not unavailable to you just because you are no longer employed. There are options available to you whether you are searching for another full-time job, attempting to start your own business or are just struggling financially because of lost work.
COBRAThe Consolidated Omnibus Budget Reconciliation Act (COBRA) provides health care coverage through your last employer for up to 18 months at 102% of the cost, and is one of the basic options for people who find themselves without work. Not all businesses are required to offer insurance benefits to their associates and therefore, COBRA coverage may not be available. Check with your employer to see if COBRA would work for you. However, since most employers pick up a majority of the premiums offered to its employees, the cost to an unemployed worker is often astronomical and unrealistic. To learn more about COBRA click here.
New Legistlature. In 2009, Title III – Health Insurance Assistance for the Unemployed Act was signed into law. It was created to help those struggling to take care of their families while searching for a job. The Health Insurance Assistance act recognizes the hardship created on families who are forced to use COBRA and offers a transitory funding to help cover their premiums and even extends the eligibility period for older workers and long-term employees. This act also has made it possible for many states to extend Medicaid programs to those unemployed who under normal circumstances would not typically qualify (US Committee on Ways and Means, 2009).
Individual Health Insurance CoverageIndividual Health insurance is available when other group plans are not and is not qualified or based on employment status. This type of policy allows you and your family to select a plan of your choice that fits into your lifestyle and budget. This type of insurance is often used by self-employed persons, those working for a small company or those with no group options in cases of unemployment. For more information on Individual Health Insurance click here.
Government Sponsored ProgramsThe government has medical programs available to those who qualify--namely Medicaid and the Children’s Health Insurance Program (CHIP) for low-income families. Unemployment does not always fulfill the requirements. Qualification is typically based on monthly family income, available assets and availability of other programs. Eligibility requirements may be different in some states.
References:
United States Department of Labor. (2010). Bureau of Labor Statistics. Retrieved from: http://data.bls.gov/PDQ/servlet/SurveyOutputServlet
US Committee on Ways and Means. (2009). Title III - health insurance for the unemployed act of 2009. Retrieved from: http://waysandmeans.house.gov/media/pdf/110/cobra.pdf |
