Here is a good general knowledge article about the options you have if you decide to leave your job and your employer insurance plan. Contact your IHC agent as soon as possible to discuss the specifics as they relate to your situation. You have options!
COBRA
You were just laid off… options other than COBRA can save you money.
Most employers offer continuing insurance coverage where you can temporarily continue your health insurance coverage through a federal law known as COBRA.
Congress passed the Consolidated Omnibus Reconciliation Act (COBRA) two decades ago to give families an insurance safety net. Before then, people who lost health insurance at work often had trouble qualifying for coverage when they tried to buy it on their own. They would get turned down or face exorbitant premiums if they had pre-existing health conditions.
So what does that really mean? When your employer provides health insurance benefits, they typically pay 50% and you pay 50% of the monthly premium. If you choose COBRA, you will be paying the employer’s portion (50%) and your portion (50%) plus a 2% administrative fee.
Purchasing your own health insurance can save you money. Look at these examples where one spouse was laid off. (Neither of these couples qualify for an Affordable Care Act subsidy. Affordable Care Act Plan premiums would be very similar to COBRA.)
A family of four with a couple in their 40s and two children
- COBRA monthly premium is $1442
- Extended 36 month short term plan monthly premium of $738
A married couple in their mid 50s:
- COBRA monthly premium is $1701
- Extended 36 month short term plan monthly premium of $830
You have choices…contact me for a free comparison!
Are You Covered?
It doesn’t cost as much as you may think. There are different opinions about COVID-19 and the health impact on our country. However, one thing is certain. If you became infected and hospitalized, the cost of your care would exponentially outweigh the cost of your monthly premium and the right health insurance plan. There are many reasonably priced options and plan durations to choose from.
I Need Heath Insurance… What Options Do I Have?
Today, many people are self employed, losing their employer benefits or finding their employer benefits too expensive along with higher deductibles and decreasing benefits.
If you are in this situation, it can be a challenging and daunting task to find and understand the right health insurance option that will fit your coverage needs and budget. Going on-line can get you in trouble as you believe that you are getting a certain type of coverage and then when you go to use your insurance, it is not what you signed up for.
I would also caution you, that there are insurance companies and agents that will lead you to believe you are getting a major medical plan when the only major medical plans remaining in the market are Affordable Care Act (Obama Care) plans or employer group plans.
Currently, there are three types of plans available for private (or non-employer paid) health insurance.
Affordable Care Act (Obama Care) which is well suited for those individuals who have a pre-existing condition of which they are currently being treated to ensure that they are not without treatment. These plans have an open enrollment period of November 1st – December 15th or you can enroll outside of these dates if you have a qualifying life event.
Short Term Plans. These plans work well for people in transition; i.e., between jobs that offer employer paid benefits or needing a few months of coverage before moving into Medicare. These plans are currently offered for 30 days to 36-months terms and are re-writeable after the plan term expires. These are structured similar to a major medical plan with a deductible, co-insurance and max out of pocket with annual benefit of $2 million. Doctor office and some well care is included. These plans do not have a designated open enrollment and one can enroll any day of the year.
Hospital Indemnity Plans offer the best option for those looking for a permanent plan, in other words, one that is guaranteed renewable. These plans offer a set insurance benefit for medical services for hospitalization, surgery, doctor visits, well care and other medical services. Some plans have a zero deductible or you can choose a higher deductible. Your auto insurance is an indemnity plan; i.e., when in an accident, your deductible (should you have one) is deducted and then your benefit is applied to pay for the repair of your automobile…this process is per incident. As with the Short Term plan, enrollment is offered any day throughout the year.
Don’t get caught with the wrong health insurance…for information or questions, please feel to contact me. And, by the way, if you are unhappy with your current health insurance plan, you are able to cancel at any time and switch to another type of plan.
