The current economic climate has been particularly devastating for those employed by tech giants like Microsoft and Google, with mass layoffs happening across the globe. For those in need of health insurance between jobs, it is important to understand your options for finding affordable coverage quickly. With careful research and planning, you can find the right plan for your needs without breaking the bank.
According to the recent study, Approximately 158 million people, or more than half of the U.S. adult population, receive health insurance via their own employer or the employer of a household member. However, this coverage is usually lost once an employee leaves their job. For many people, staying in an unwanted job for health benefits is an all-too-common reality. Unfortunately, these individuals may find themselves stuck in their current position even if the salary and working conditions are far from ideal. Fortunately, there are ways to obtain health insurance between jobs. Employees may be able to extend their existing coverage for a short period of time through the Consolidated Omnibus Budget Reconciliation Act (COBRA). Additionally, keeping track of government subsidies and researching private plans can help you find the coverage you need to maintain your physical and mental well-being while transitioning through periods of unemployment or underemployment.
Health Insurance Between Jobs
Transitioning between jobs or periods of unemployment can be a major cause of stress, but one way to ease this burden is by taking proactive steps to secure reliable health insurance. There are a variety of ways to obtain coverage when you’re unemployed, with opportunities ranging from employer-sponsored plans to government subsidies. In this section, we’ll explore some of the different options available for securing health insurance in between jobs.
Keep Your Employer-Sponsored Health Plan Through COBRA
One health insurance option available to those who are between jobs is COBRA Insurance. COBRA (Consolidated Omnibus Budget Reconciliation Act) insurance is a type of health insurance that allows individuals who are between jobs to extend their existing group health coverage at the same rate they were receiving while employed, provided that qualifying events take place. Any individual who was enrolled in a group plan sponsored by their employer and whose coverage has been lost due to certain qualifying events can be eligible for COBRA insurance. These qualifying events typically include:
- Termination or reduction of hours
- Death or divorce of a plan member
- Certain leave violations and other lawful events as mandated by federal law
Coverage typically begins on the day after an employee’s group health insurance ends and lasts up to 18 months (with certain exceptions for individuals with disabilities). The individual is responsible for paying the full COBRA premium and associated fees.
COBRA insurance coverage is typically the same as the coverage you had from your employer. The only difference is that the individual covered by COBRA insurance is responsible for paying the full premium and any applicable fees associated with it. The duration of your COBRA insurance coverage can be up to 18 months, although there are certain exceptions that may extend this timeline.
Pros
One of the main advantages of using COBRA insurance as a way to get health insurance coverage is that it allows individuals to continue receiving the same health care coverage that they were covered under prior to leaving their job. This means that individuals don’t have to worry about going through a new policy or application process and can keep their existing doctor or plan if they choose to. Another benefit of COBRA is that it allows individuals to extend their existing coverage for up to 18 months, which gives them much-needed time and flexibility while they search for a new job. Furthermore, COBRA is an affordable option, with qualified individuals paying as low as 102% of the cost that their employer was previously paying.
Cons
One of the main drawbacks of using COBRA insurance as a way to get health insurance coverage is that individuals are required to pay the full premium and any applicable fees associated with it. This can be an expensive proposition for many individuals, especially those who have recently lost their job and do not have other sources of income. The average annual premium for an employer-sponsored plan was $7,739 for single coverage in 2021. Furthermore, COBRA coverage only lasts for up to 18 months, which may not be long enough for some individuals. Lastly, some employers do not offer COBRA coverage at all, making it difficult or impossible for certain individuals to take advantage of the program.
Enrollment Periods
Individuals who wish to take advantage of COBRA health insurance coverage have two deadlines they need to be aware of.
- The first is the election period, which begins on the day after their employment ends and lasts for up to 60 days. During this window, the individual must notify their employer that they wish to take advantage of COBRA coverage and make any necessary payments.
- After the election period has expired, there is a second deadline known as the payment deadline which requires individuals to make all applicable payments within 45 days in order for their coverage to go into effect.
Get A Short-Term Health Insurance Plan
One option to consider when looking for health insurance coverage between jobs is short-term health insurance. Short-term plans provide coverage for periods of time ranging from 30 days to up to one year and can be a great way for individuals who are transitioning between jobs and may not qualify for COBRA coverage to get the protection they need. Eligibility for short-term insurance depends on certain events, such as recently losing employer-sponsored group health coverage, being in the process of changing residence, or waiting for another form of insurance to become effective.
The eligibility requirements for short-term health insurance vary by state and provider. Generally, individuals must be 18 years or older, not be eligible for government-subsidized health insurance coverage, have no pre-existing condition that would disqualify them from coverage, show proof of US citizenship/residency, and provide evidence of recent loss of employer-sponsored group health insurance coverage or other qualifying events. It is important to check with the relevant state department for specific guidelines as these may change.
Short-term health insurance plans can be a great option for individuals who are looking for flexibility and coverage between jobs. Examples of some of the most common short-term plans available include catastrophic plans, which provide basic coverage at a lower cost; indemnity plans, which allow customers to choose any medical provider; and limited benefit plans which provide protection for specific conditions. It is important to research different plans carefully in order to find the one that best fits your needs.
Pros
Short-term health insurance is an appealing option for individuals who are looking for coverage in between jobs. The main advantages of short-term health insurance include the ability to get coverage quickly and easily, its more affordable rates compared to traditional long-term plans, and flexibility when it comes to coverage options. These policies often provide basic levels of protection while also giving individuals access to benefits such as preventative care and doctor’s office visits. Short-term health insurance can be a great way to bridge the gap between careers or for those who need immediate access to coverage.
Cons
While short-term health insurance can provide an ideal solution for bridging the gap between jobs, there are also some potential drawbacks to consider. One of the main drawbacks of short-term health insurance is that it does not provide comprehensive coverage like traditional long-term plans. Additionally, these policies often don’t cover pre-existing conditions and certain medical treatments may be excluded from coverage. Finally, the duration of these plans is typically quite limited, so individuals need to make sure they have another form of coverage before their policy expires.
Enrollment Periods
Short-term health insurance plans are available at any point throughout the year. That being said, you can enroll in this plan as soon as you lose your employer-sponsored coverage or wait. Once you find a provider and get approved, your coverage should start within a couple of weeks.
Get An Individual Health Insurance Plan
Individuals who are in between jobs may find that an individual health insurance plan is their best option. These plans can provide coverage while they wait to enroll in a new job-based plan. To be eligible for an individual health insurance plan, individuals must meet certain criteria such as age, income, and location. Individuals also need to provide a valid Social Security Number (SSN) or other documentation proving they are legally present in the United States. Depending on the provider’s requirements, individuals may also have to submit proof of citizenship or residency status. All of this information will help determine eligibility for an individual health insurance plan.
Premiums for individual health insurance plans are determined by a number of factors:
- Location
- Age
- Plan Category
- And any pre-existing conditions
The plan’s deductible and coinsurance levels may also affect the amount of premium you pay each month. Other factors such as smoking habits, lifestyle choices, and certain services or treatments can all have an impact on premium costs. It is important to consider all of these factors when choosing a plan so that you can be sure you are getting the best coverage for your specific circumstances at the most affordable price.
Individual Health Insurance Plan typically covers most of the same benefits as employer-sponsored healthcare plans, but there may be differences in cost, eligibility requirements, and coverage options. For example, individuals may have to pay more out of pocket depending on the plan they choose. Also, individual plans often don’t cover preventive care services or certain medical treatments that may be available under employer-sponsored plans. Individuals should compare the coverage offered by individual and employer-sponsored plans to make sure they choose the right one for their needs.
Individual Health Insurance Metal Tiers
There are four main types of individual health insurance plans; bronze, silver, gold and platinum. Bronze plans provide the least amount of coverage but usually have the lowest premium payments. Silver plans offer slightly more coverage than bronze and usually come with a higher monthly premium payment. Gold plans typically come with higher premiums but offer the most coverage among all health plan options. Platinum plans offer the highest level of benefit coverage but tend to have the highest periodic cost associated with them. All insurance plans vary by state, so it’s important to research and compare your options to find the best plan for you.
Bronze
Coverage: Lowest
Deductibles: Highest
Co-payments: Highest
Out-of-Pocket Maximums: Highest
Silver
Coverage: Slightly More than Bronze
Deductibles: Lower
Co-payments: Lower
Out-of-Pocket Maximums: Lower
Gold
Coverage: Most Coverage
Deductibles: Moderate
Co-payments: Moderate
Out-of-Pocket Maximums: Moderately High
Platinum
Coverage: Highest Coverage
Deductibles: Lowest
Co-payments: Lowest
Out-of-Pocket Maximums: Lowest
Pros
Getting an individual health insurance plan is a great way to ensure you have coverage while between jobs. One of the major advantages of having an individual plan is that it gives greater flexibility in terms of benefits and coverage. While employer-sponsored plans often have limited coverage options, individual plans can be tailored to the specific needs of the policyholder. Additionally, individuals are not locked into a plan for a set amount of time like with employer-sponsored healthcare–they can choose how long they want coverage for. An individual health insurance plan also offers more control over what services are covered which can help keep costs down and give further peace of mind that all necessary treatments will be taken care of.
Cons
While individual health insurance plans offer greater flexibility and control than employer-sponsored plans, they also come with a few drawbacks. For one, individual plans can be significantly more expensive than employer-sponsored coverage–depending on the type of plan chosen, insurance premiums can be quite high. Additionally, individuals may not have access to the same level of coverage or benefits as they would under an employer-sponsored plan. Furthermore, if someone is between jobs for an extended period of time, it can be difficult to keep up with payments for the premium if their income has been affected due to unemployment.
Enrollment Periods
If you lose your employer-sponsored health insurance, you may be eligible for a special enrollment period of 60 days. During this time, you can apply for an individual plan and make changes to any existing ones. It’s important to note that if you do not enroll in a plan during this window of opportunity, you will have to wait until the next Open Enrollment Period which typically runs from late fall to mid winter. During Open Enrollment, all individuals are eligible to apply for insurance coverage regardless of their current employment status.
Medicaid - Low Income Solution
Medicaid is a government-funded health insurance program that provides coverage to people from many different backgrounds. It can be used by people who are unemployed or between jobs, as Medicaid eligibility doesn’t depend on employment status. Additionally, Medicaid offers more comprehensive coverage than some other types of health plans, as it covers necessary prescriptions and preventive services at no cost to the beneficiary. For those who require additional care, such as mental health services or dental services, Medicaid may cover all or part of the costs involved. All in all, Medicaid can be an excellent way for individuals and families to get the coverage they need without breaking the bank.
To be eligible for Medicaid coverage in your state, you must meet certain criteria. Generally, eligibility depends on a combination of factors such as income level, household size and parental status. In addition, some states may have additional eligibility requirements based on age, disability or pregnancy. Furthermore, the rules and regulations governing Medicaid coverage can vary from state to state. To find out more information about eligibility requirements in your state, it is best to contact your local Medicaid office or visit the website for your state’s Medicaid program.
To contact your local Medicaid office, you can search for their number online or look for contact information on your state’s Medicaid website. Once you find the phone number, you can call and inquire about specific eligibility requirements, coverage options and other relevant questions. You may also be able to schedule an appointment with a local Medicaid representative to discuss any concerns in person. Additionally, many states offer online resources with detailed information about Medicaid programs and services.
Enrollment Periods
Generally, most states have an open enrollment period throughout the year which allows individuals to apply for coverage. However, some states may offer special enrollment periods at certain times of the year or if there are major changes in circumstances. To find out more about specific eligibility criteria and any special enrollment periods for your state, it is best to contact your local Medicaid office or visit the website for your state’s Medicaid program.
Subsidized Affordable Care Act Plans - Low Income Solution
Subsidized ACA plans can be an invaluable resource for individuals looking to maintain health insurance coverage in between jobs. These plans are offered through the Affordable Care Act (ACA) and provide assistance with the cost of coverage and offer certain protections, such as guaranteed access to care regardless of pre-existing conditions. Subsidized ACA plans also often include a variety of additional benefits, such as prescription drug coverage, vision care coverage and preventive services like vaccines. Individuals who qualify may also receive additional subsidies based on their income level. For those looking for short-term or temporary health insurance during a period of transition, subsidized ACA plans can provide valuable coverage that meets their needs.
The two types of subsidized ACA Plans are for those who qualify for the Advanced Premium Tax Credit and those who qualify for Cost Sharing Reduction.
The federal poverty level (FPL) is used to determine eligibility for subsidies or cost savings in healthcare plans. It is based on a person’s income and family size. A person whose annual income is 400% above the FPL would not be eligible for subsidies or reduced costs on their health plan, while someone whose annual income falls within 100-250% of the Federal Property Level may be eligible depending on their particular situation.
For example, let’s say that an individual earns $25,000 annually and lives in a household of three people. The FPL for this individual would be $21,330 per year. This means that this person would qualify for the Advanced Premium Tax Credit as well as Cost Sharing Reduction if they enroll in a plan through Healthcare.gov.
Bottom Line
If you find yourself in a situation where you’re between jobs and need health insurance coverage, there are several options available. You may choose to purchase an individual policy through the marketplace, utilize COBRA, or consider short term health insurance.
FirstQuoteHealth can help make your search for coverage easier by comparing plans from all of the major carriers, so you can quickly get the most comprehensive coverage at the best price. With FirstQuoteHealth, it’s easy to compare plans side-by-side and find the one that works best for your needs and budget.