With the national unemployment rate at 8.5 percent, families are living on tighter budgets, and many are struggling to maintain their health insurance coverage. Despite these challenges, there are still ways for consumers to remain protected and save on insurance costs, according to the National Association of Insurance Commissioners (NAIC).
“These uncertain times require us all to be vigilant about our insurance to make sure we are protected,” said NAIC President and New Hampshire Insurance Commissioner Roger Sevigny. “Consumers can safeguard themselves and their families regardless of their employment situation by making sure they understand their coverage and researching less expensive alternatives.”
Options for the Newly Unemployed
It is important for the newly unemployed to examine their options early, because some choices expire within weeks of job termination. The NAIC offers the following tips about health insurance for those who have recently lost their jobs or believe they might need to plan for the possibility:
* If married, consider joining your spouse’s plan: Transitioning to a spouse’s plan is typically the most affordable option, but you have to act quickly. There is a 30-day special enrollment period during which an employee can add a dependent who has lost coverage. If that 30-day window expires, then your spouse would need to wait to add you to his/her plan until the open enrollment period occurs.
* Consider COBRA: The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals who leave their jobs at companies with 20 or more employees to continue their health insurance coverage for 18 months. Many states extend similar access for those who worked for small companies through “mini-COBRA” laws. In most cases, you have 60 days to elect coverage. COBRA coverage can be expensive, because you are required to pay the full premium, plus an administrative fee. [Read more...]
