Peace of Mind: Medical Insurance Options for the Unemployed
According to the US Census Bureau, 45.7 million people in the United
States did not have health coverage at some point in 2007. With current
unemployment being twice what it was in 2007, time will likely reveal
even more staggering data for the current number of uninsured Americans.
While legislators are working on this ongoing problem, there are some
more immediate solutions for gaining insurance, even if one is
unemployed.
As everyone knows, health issues seem to strike when you least expect
them, or when you are completely unprepared. So here, we will walk you
through options for gaining insurance to cover yourself for the time
being, if you are unemployed or not working at a company that offers
health benefits.
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For the recently unemployed: If you are recently unemployed from a job
in which you did have health insurance, check into continuing
enrollment in that former employer's health insurance program for up
to 18 months, based upon the COBRA law. This will allow you to
continue with your current insurance while seeking a new position and
settling into the programs of your new employer. A helpful website for
guidance is www.cobrainsurance.com. Remember that you only have a 60
day election period after your job termination in which to continue
your former employer's benefits, so don't wait too long to start
exploring this critical option.
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Individual coverage: Whether employed or unemployed, you may seek
coverage through an individual insurance plan wherein you can select
the options most suitable for your specific needs. If you purchase a
plan while unemployed and then gain employment that provides insurance
as part of your benefits package, you may opt into the new employer's
coverage or retain your own plan from the individual policy.
There are several types of individual coverage, some with all of the
"bells and whistles" of coverage and those of the bare minimum. Your
current health and financial situation will likely be the determining
factors toward which you consider most appropriate for you. The primary
ones for those seeking lower-cost options are listed below:
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Temporary: According to Peter Bielagus, author of the book "Getting
Loaded: Make a Million While You’re Still Young Enough to Enjoy It,"
you can find a temporary policy for three six month renewal increments
(up to 18 months) that costs as low as $40 per month. The trick with
temporary policies is in ensuring that you are covered well enough for
the time being, and don't in any way compromise your eligibility for
future insurance needs. Ensure all of your questions or concerns are
answered through your insurance agent, before taking out a temporary
health policy.
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Limited Benefit Plans: If you need primarily doctor's visits and
prescriptions covered and are in low-risk, very good health, you may
opt for limited benefit insurance. These plans walk a fine line with
high risk, however, in that they do not typically offer coverage for
emergency room visits or hospitalization. Consider what is best for
your situation and proceed cautiously with the best limited plan
possible for you.
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High Deductible Plans: If you are young and/or healthy, a high
deductible plan may work well for your situation. You will be
accepting the financial liability for paying more out of pocket if you
do need to go to the doctor, but meanwhile your day-to-day needs will
be covered through a much lower premium and a deductible that should
prove far less financially catastrophic than a doctor's visit or
hospitalization without any coverage.
A helpful non-profit resource for finding the right health insurance fit
for your situation can be found at: www.coverageforall.org.
