Unemployment in the United States has been stuck at some of the highest levels in years. Massive job losses, downsizing and outsourcing resulted in millions not having health insurance. Although it is not easy, the unemployed can still have health insurance to ensure they and their families have coverage when they need it.
First, employers are required by federal law to offer health insurance to their former employees. This is also known as COBRA. COBRA allows former employees to keep the exact same medical plan they had while employed. However, the employee is responsible for all premiums. These premiums are pretty expensive because the employee must cover the entire cost of the coverage. Also, note that you must “elect” to participate in COBRA coverage shortly after separation from your job.
During the height of the unemployment crisis, the federal government tried to make affording COBRA easier for the unemployed. The government offered subsidies up to 65 percent of the monthly premiums. This program helped millions be able to afford their COBRA coverage. The U.S. Department of Labor, which is responsible for regulating COBRA, can provide you with further information including whether subsidies might be available to you
Nevertheless, the COBRA option is simply not realistic to many unemployed workers, so there are other ways to buy health insurance. It may seem tempting to go without coverage, but it is not a wise choice. Those who have chronic health conditions will face harsh realities if they are not covered by health insurance for longer than 63 days. When they do buy health insurance, the company will not cover pre-existing conditions for long periods of time. In fact, in some cases, the new health care coverage won’t cover pre-existing conditions at all.
One option for health care coverage is seeking out individual health coverage. It is possible to do an extensive comparison of all health care companies that offer individual plans. The most affordable plans are going to have extremely high deductibles, but this may be a great solution for some. In the event a catastrophic illness or injury occurs, the individual will simply have to meet the established deductible. In some cases, the deductible can be thousands of dollars, but in catastrophic cases, it is certainly worth it. By choosing high deductibles, the individual will be able to negotiate lower monthly premiums.
Many Americans have also opted for indemnity coverage to help them pay for their medical bills. Indemnity policies pay a fixed amount that can greatly help you offset the cost of visits to the doctor or a stay in the hospitals. For a young person with no ongoing health problems, an indemnity policy might be the most affordable option during a period of unemployment.
It is tough to maintain health coverage in this volatile economy, but it is important to exhaust all options before going without coverage. It is simply too risky to go without medical coverage. One injury or illness can cause you and your family to go bankrupt.
