Monday, February 16, 2009
Health Insurance tips when you lose your job
Posted by SooYoen(Pia),Shin
When people lose job, they starts to cut any expense that are not necessary. However, experts say keeping health insurance is essential. Most experts suggest to extend COBRA. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act which was passed by Congress in 1986. COBRA allows people who have lost job recently to keep their former employer’s health benefits for up to 18 months. To extend the policy, people must contact their old employer and sign up for COBRA within 60 days after layoff. However, COBRA is quite expensive for unemployed people. It is because employers pay health coverage for active workers, while COBRA participants have to pay the full premium themselves. More specifically, employers, generally, run for one’s COBRA program with charging the full cost of premium plus a 2% administrative fee. However, COBRA payment is usually less expensive than individual health coverage.
Experts advise more tips for when people lose their jobs. The easiest and cheapest way to acquire health coverage is through working spouse. Most companies offer “emergency inclusion” allowances for when employees’ spouses lose their jobs. People may consider a high-deductible plan to cover minimum health care need such as doctor visits, prescription drugs, and check-ups for your kids. And also, people can acquire short-term health care coverage only if they expect to be back in the workforce within six months to a year. Getting group plans through church, social club, any professional service, or veterans’ organizations or acquiring State Children’s Health Insurance Program (SCHIP) for children and applying for cheaper coverage for parents through SCHIP is other options as well.