Tags: COBRA | Health insurance

Today’s economy is bringing change to many households around the nation and in particular to those impacted by unemployment.  With the national unemployment rate conservatively cited at 10%, many people today are wrestling with securing health insurance in between jobs.  As unsettling as it may appear when one first receives a layoff notice, the reality of losing employer-sponsored health benefits can be equally as daunting.  There are however, several options:  spousal/partner health coverage, COBRA and private insurance.

If your situation allows you to obtain health coverage through your spouse or domestic partner, this may be the most logical and cost effective way to secure health coverage immediately following your employment termination.  In such circumstances, employers may waive the enrollment period phase, however it is best to check with your spouse/partner’s human resources group.  It is important to act as soon as possible as some employers only allow a 30-day window (post termination event).

In cases where you are single or are the sole provider of health insurance for your family, COBRA is an option that will offer health insurance during your transition.  The Consolidated Omnibus Budget Reconciliation Act, COBRA, is a federal law enacted in 1986 to allow you to pay for an extension of your health insurance coverage for 18 months.  Companies with more than 20 employees are required to notify you in writing of COBRA coverage at the time of termination.  A terminated employee has 60 days from the time employer-sponsored health insurance ends to enroll in COBRA.  The health coverage will be the same as when employed and at the former employer’s rate.  A good COBRA resource is:

http://healthinsurance.about.com/od/healthinsurancebasics/a/laid_off_finding_insurance.htm

Private insurance is another option to consider.  In this case, one can begin looking for private insurance right after being laid off or after COBRA has expired.  In either case, there are several factors to consider and the video below explains the basics:

http://video.healthination.com/usnews/health-insurance-basics.html

A good starting resource for private health insurance providers is:

http://www.health-plan-news.com/list-of-health-insurance-companies/

Securing health insurance is one of the most important decisions you will make during one of life’s transitions, unemployment.  There are however, several options and a myriad of resources to help you find your footing again.