Unemployed Health Insurance

By: EconomyWatch Content   Date: 13 February 2010

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Getting an unemployed health insurance cover is a challenging task. This is because you may not be able to afford it when you are jobless and do not have a regular source of income. However, health insurance plays a crucial role in case of an emergency medical situation. In the US, health insurance policies are provided for by employers in terms of employee's health benefits. These plans are very cheap compared to the individual-purchase plans that feature higher premiums.

 

Unemployed Health Insurance: What to Expect While Researching for Insurance Plans for the Unemployed

There are a number of federal programs you can take help from to find health insurance on a temporary basis. This service is also available with several private carriers. It is important to note that you may have to apply soon after you lose your job, which requires you to do prompt research. The best way to find such a program is the Internet. Your local unemployment office may also provide you some information regarding where to go for unemployed health insurance.

Unemployed Health Insurance: COBRA Provisions

If you were laid off or rendered unemployed by your employer, you can take advantage of COBRA - a provision by the federal government. COBRA or Consolidated Omnibus Budget Reconciliation Act of 1986 enables unemployed individuals to hold on to the health benefits that the previous company was offering for not more than 18 months. However, you must meet the following criteria to be able to qualify for COBRA provisions:

·         The resignation is done within 60 days of losing the job.

·         You were terminated for reasons other than gross misconduct.

·         You must qualify for health benefits offered by your previous employer the day before your last in office.

Unemployed Health Insurance: Types

Unemployed health insurance can be divided into the following broad categories:

Full Benefit Plans: These plans are quite affordable and provide coverage for office visits and prescriptions before the deductible. You need to afford a medical deductible for major diagnostic tests, surgeries and hospital visits. Some carriers also offer the provision of choosing a doctor from a network.

Catastrophic Health Insurance Plans: These are cheaper plans that do not cover prescriptions before the deductible or office visits. However, preventive care is covered by some of them. Several catastrophic plans provide 100% coverage for your medical expenses once you meet the deductible.

Short-Term Health Insurance Plans: If you have bright chances of securing a job soon after losing your previous job or you have recently completed your graduation, you can apply for these plans. The typical terms are 6 months and 12 months.

 


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