How To Own Your Health Insurance Plans

One of the major difficulties involved with becoming unemployed is the loss of employer sponsored health insurance. Since retaining health insurance protection is all-important, choosing a new insurance provider must be done as soon as possible. Many of the most popular insurance companies, like COBRA, are expensive. However, you do have other options.

COBRA

If you had a COBRA insurance plan with your employer, then you may be allowed to retain it at your own cost for the following eighteen months, but you must choose to keep it within 63 days of ending your job or you lose the option.

COBRA is the best option for those with medical conditions already, or whose ongoing treatment comes at a high price. In that case, it can be an essential bridge to your next group coverage, since it is "HIPAA" qualified and will not exclude your pre-existing health conditions. Further, the same rule will apply should you join a new employer based plan, which will count your previous time as "Creditable Coverage." On the other side of, this, however, is the fact that COBRA payments can be unreachably high.

Note: If your company goes out of business or chooses to discontinue their group health benefit, you will also lose your COBRA benefit.

State Continuation

Certain states, as for example Texas, have a mandated benefit continuation. This is good if your company was too small to qualify for COBRA. Usually, these have shorter benefit periods (6 months in Texas) but it is worth looking into. However, as with COBRA, you will be paying painfully high prices for the benefits.

Short-term "Gap" Insurance Plans

Short-term plans are inexpensive health insurance plans designed to cover a sudden, unexpected medical problem while you are waiting for better insurance to become available, such as when you are between jobs or waiting for eligibility with a new employers group plan. They are usually not offered for more than six months.

There are, however, certain drawbacks. First, they exclude prior medical conditions. Second, they do not qualify as "Credible Coverage" under the HIPAA rule and, if your time between group plans is over 63 days, your future employer sponsored plan can apply pre-existing condition exclusion. Thirdly, despite simpler screening processes, good health is still necessary to qualify. And finally, there is always the danger of a new emergency requiring treatment beyond limited short-term contract time.

Individual / Family Health Insurance

A still expensive plan (but often cheaper than COBRA) with better and longer benefits, is choosing your own Major Medical Insurance Policy. These include High Deductible plans that are also Health Saving Account compliant, and can help you out a lot in the event of a major medical problem. This is a great option if you and your dependants can pass the initial health screening.

Having your own health insurance has its own benefits. For example, it lets you apply for jobs which do not include group medical insurance, or it can give you the opportunity to be self-employed.