The pandemic affected businesses in numerous ways, and the resultant restructuring or folding up process left many unemployed. The importance of functional health coverage cannot be overemphasized now, especially with the increase in delta variant cases. There are some ways to keep you and your dependents covered depending on your income and your preferences.
Have You Been Furloughed, or Are You Laid Off?
If your unemployment is temporary, your employer’s health insurance plan will usually cover you until your leave ends. However, you will be expected to find an alternative source of income to cover the out-of-pocket settlements for the time being. If you were laid off, the health insurance benefits would usually end with the job. On rare occasions, the employer offers a subsidy for some time. It would help if you discussed the possibility of such an arrangement with your employer.
How to Stay Adequately Covered?
Market place insurance plans are particularly useful if your income is drastically affected since they comply with the Affordable Care Act (ACA) of 2010. You want to ensure that whatever plans you go for cover essential health benefits like prescription drugs, emergency services, and pre-existing health conditions. Short-term insurance, indemnity plans, COBRA, Medicaid, and Medicare, are other options you could consider.
Consolidated Omnibus Budget Reconciliation Act (COBRA) Healthcare Coverage
This federal program allows you to stay on your employer’s plan for up to three years. However, you will have to pay for the plan by yourself. Monthly COBRA can be very expensive. Hence you can request a subsidy from your employer. If you have a health or flexible savings account, you can pay for your COBRA funds and out-of-pocket bills with funds from those. Note that COBRA will be unavailable to you if your job ends because your employer went out of business.
Opting for Short-term Healthcare Insurance or Indemnity Plans
These are not ACA compliant and, therefore, may not be your best bet if the layoff severely impacts your income. Short-term plans usually use a network of healthcare providers, and they cover fewer things than marketplace health insurance plans. Some of the things covered include certain inpatient/outpatient hospital services, some routine tests, and emergency injury or illness. These plans are most likely to not cover preventive care, prescription drugs, maternity care, mental healthcare, and any pre-existing medical conditions.
Indemnity plans, on the other hand, allow you to select your preferred healthcare providers. The plan will cover a certain percentage of the bills while you will foot the rest. Indemnity plans can often result in expensive medical bills, and most of these plans don’t include any form of consumer protection because they do not comply with the Affordable Care Act. Also, no preventative healthcare needs are fully covered.
Opting for a Marketplace Health Insurance
These are more wholesome plans which cover preventative, and emergency healthcare needs generously. Although the monthly premiums may seem high, they are more economical in comparison to short-term and indemnity plans. They also qualify for subsidies which you may be eligible for, depending on your earning power.
If you do not qualify for subsidies, you can pay for health care with money withdrawn from your Individual Retirement Account (IRA). The 10% early withdrawal penalty is waived in this situation.
Getting laid off can be a financially difficult situation, especially if you do not have adequate health insurance to cover you in any medical emergency. Contact our team of seasoned insurance professionals at Randy Jones Insurance today to learn more about your health insurance options. We can offer you the best possible personalized health insurance plans at affordable rates if you have been laid off and need to get health insurance.