It’s no secret that the United States is facing some tough financial times right now. Millions of companies are making cut-backs, decreasing salaries, and continuing to lay off an increasing amount of employees. As workers continue to deal with the threat of losing their jobs on a daily basis, those that are already unemployed as a result of the recession are finding themselves in quite a bleak predicament. There is no doubt that losing your job is devastating. Sadly, in addition to loss of income, you also have to deal with losing your
health insurance.
For the countless Americans suffering from different types of medical issues, this particular loss is extremely difficult to bear. Furthermore, unpaid medical bills have been pinpointed as one of the major reasons for bankruptcy in the U.S. With millions already without coverage, the amount of uninsured individuals is only expected to increase with the economic crisis underway. Fortunately, all hope is not lost during these hard times. Keep reading to discover what you can do to keep your health insurance after you've lost your job, as well as some tips for getting health insurance while you're unemployed.
How to Afford Health Insurance during Financial Hardships
Fortunately, there are many ways for you to obtain affordable health insurance, in spite of being unemployed. The following options can help you decide what the right course of action is for your particular situation:
COBRA
The
Consolidated Omnibus Budget Reconciliation Act is a federal law that requires continuation of coverage for displaced or laid-off workers. The purpose is to provide recently unemployed individuals with the option of continued health insurance if they are able to pay the premiums. Although premiums can often be higher, as your employer will no longer finance part of the payments, it’s one way of keeping health insurance after you’ve become unemployed.
Spousal Coverage
Another option for unemployed health insurance is to go under a spouse’s coverage plan. This type of arrangement can work when one spouse is unemployed and the other is employed. In most cases, all you have to do is call the HR benefits department in order to add your spouse under your health insurance plan. However, keep in mind that there may be some additional premiums which will be deducted from the paycheck of the employed spouse.
Private Health Insurance
Various types of individual and
private health insurance plans can also be sought when you find yourself in between jobs, or unemployed. For instance, if COBRA is unavailable to you, short-term insurance may be a good alternative to consider for keeping health insurance. It generally lasts for one month to a year, depending on what type of coverage you need. Catastrophic health insurance is another good choice if you do not suffer from any pre-existing medical conditions. This type of unemployed health insurance is meant for serious medical perils that could potentially put you in a vast amount of unwanted debt. It provides coverage for hospitals stays, and medical procedures such as X-rays and surgery.
Governmental Programs & More
During these difficult financial times, Medicaid may also be an option to consider if you have lost your job and need health insurance for you and your family. You can also look to local clinics that may be offering affordable health care during your unemployment period. Additionally, depending on your income and assets, your children may be eligible for free or very low-cost health care programs provided by the state.
You could also compare providers online that cater specifically to unemployed individuals. Losing your job is very tough, but losing your health insurance can be even more burdensome. However, don’t forget that you have options to keep your health insurance as well as affordable alternatives for your healthcare needs.