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.

http://www.indystar.com/article/20090215/BUSINESS/902150350/1003/BUSINESS
http://www.emilitary.org/article.php?aid=14147
http://www.mainstreet.com/article/moneyinvesting/insurance/cramer-health-insurance-tips-unemployed-part-i
http://www.mainstreet.com/article/moneyinvesting/insurance/cramer-health-insurance-tips-unemployed-part-ii

Approval of Health Insurance for Unemployed

By Shu Zheng
-National News

The American Recovery and Reinvestment Act authorizes approximately $544 billion in new spending and $275 billion in tax cuts. The purpose of this legislation is to stimulate the economy by preserving and creating jobs, helping the unemployed and uninsured, and assisting states with budget relief measures. The U.S. House of Representatives has just approved measures to expand access to affordable health care coverage for workers who become jobless because of the recession. It is estimated that this package will help 8.2 million people keep their health care coverage.

It is expected and predicted that millions of Americans will lose their jobs because of the recession. With these job losses they and their families will then become uninsured. This bill will enable states (through Medicaid programs) to provide immediate assistance to families like this while they search for new jobs. Other federal funding will be earmarked for hospitals, doctors, clinics, and pharmacies to enable them to meet their payroll requirements and continue to employ the staff necessary to care for the people who have lost their jobs.

Often these unemployed families are enduring economic crisis and any health condition may be enough to push them to bankruptcy. If middle-class Americans experience job and wage cuts and a loss of health insurance they may not be able to keep up with monthly expenses like mortgages and college tuitions. This bill will enable funding for families in dire need and will also enable coverage for everyone while in the process of the pursuit of comprehensive health reform.

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