Health Insurance For The Unemployed – What Are Your Options?

It is tough enough losing a job, leave alone thinking about the options for health insurance for the unemployed. The economically difficult times does not make this any easier. But, state and federal laws allow those people who had health coverage through a health plan offered by their employer to continue their previous health coverage for some time. There are other options for less costly health care coverage in the event that these laws do not apply.

A law was passed by the US government in 1986 that covers health insurance for the unemployed. It gives the employees and their immediate family members the right and the choice to continue with their personal or family health insurance. It is called Consolidated Omnibus Budget Reconciliation Act or COBRA.

However, note that there are limitations if you decide to continue with the plan offered by your company. The first of these is that you can stay on the plan for up to 18 months only. This is like a short term health care plan giving you time until you get a new policy. If the employee were to become disabled during the first two months of having COBRA, the insurance is extended for 29 months.

Also remember that you need to pay the premiums when you decide to continue with the health care plan. The previous employer will not be paying any part of the expenses or monthly premium any more. You have to shoulder the full amount and this will be a financial burden.

Depending on the state of your health and your family’s, you may be able to find cheaper health care plans.

If, there is a history of medical conditions, COBRA may be the most affordable and obtainable option for health insurance. It will be very difficult to get cover for pre-existing conditions and the quote will be very expensive.

However, if you and your family are healthy with no previous health conditions, you might want to investigate an alternative to COBRA.

You might be able to find affordable health insurance on your own through private companies. Fortunately, a premium reduction for COBRA insurance is now available to qualifying employees as part of the economic stimulus package. This may help alleviate the issue of health insurance for the unemployed<