Job loss is a particularly stressful time as many people find themselves without their primary source of income, health insurance, and other health coverage. But job loss doesn’t mean you can’t stay insured. VSP Individual Vision Plans is here to help with information and resources so you can regain the insurance coverage you and your family need—in a time when you might need it most.
Ways to Get Health Insurance When You’re Unemployed
It’s true, losing your health coverage can be a stressful life event—scary, even. But it doesn’t need to derail you altogether. Rest assured that you have the necessary tools at your disposal to protect yourself.
Here are four of the top options for regaining insurance coverage after job loss.
1) COBRA extended insurance coverage
After you lose your job, it’s possible to enroll in COBRA and maintain your health insurance plan for up to 18 months (even longer, in special cases). This includes any family members or dependents that were also originally covered by the plan.
Once you have enrolled in COBRA, you’ll have to pay for the entire premium. This could mean a sharp increase in what you were paying previously—especially given that employers are not required to cover any of your COBRA premiums. Make sure to check with your HR department to see if your company pays a portion of COBRA. Be sure to compare the costs and benefits of COBRA with other insurance plan options before making a decision.
When considering your insurance options make sure to assess the pros and cons. To help you with your decision, here are the advantages and disadvantages of enrolling in COBRA.
COBRA Advantages:
- Familiarity: maintain the same coverage you had, with all the same benefits.
- Quality: depending on your employer and previous plan, the health coverage might be better than other health plan options; e.g. provided by the Marketplace (Affordable Care Act) in your state.
COBRA Disadvantages:
- Expensive: you pay the full premium of the plan, plus a 2% administrative fee.
- Inflexible: once enrolled, you cannot change to a Marketplace option until Open Enrollment in November, or until the 18 months are up.
2) Medicare Health Insurance, if you qualify
If you’re over 65, have qualifying disabilities, or are receiving dialysis treatments, you’re likely eligible to get health insurance through Medicare. Medicare has a few insurance options to choose from, but not all plans provide dental and vision coverage, so you may also need dental insurance or vision insurance in addition to your Medicare coverage. Be sure to do your research when signing up for Medicare after job loss.
This summary of the different Medicare options can help you get started and you can visit www.Medicare.gov for more information.
- Medicare Part A: Hospital Insurance
- Medicare Part B: Medical Insurance (also referred to as Original Medicare)
- Medicare Part C: Medicare Advantage Plans (bundles Parts A, B, and D, and can include extra benefits like vision, dental, and hearing)
- Medicare Part D: Prescription Drug Plans
It is important to know that not all parts of Medicare provide dental and vision coverage, so you may also need dental insurance or vision insurance in addition to your Medicare plan coverage. Be sure to do your research when signing up for Medicare after job loss.
If you are considering Medicare as your health insurance option, here are the advantages and disadvantages of Medicare.
Medicare Advantages:
- Reasonably cost-effective: Medicare is intended to ease the costs of healthcare in the retirement phase of life.
- Practical choice combinations: Although it is a bit difficult to understand your plan options clearly, there are many options for securing health coverage best suited to your needs.
Medicare Disadvantages:
- Complex: Different rules apply for each Medicare category (Parts A, B, C, and D). Pay attention to what is covered, what is allowed, and when you should enroll. Penalties may apply.
- Premium penalties: Depending on when you enroll in the different parts of Medicare, it’s possible to be subjected to penalties for the lifetime of coverage.
3) Individual Health Insurance Plans
Since 2010, the ACA has allowed individuals to purchase their own health insurance through government-regulated online marketplaces. While there is a specific Open Enrollment Period each year starting in November, you may qualify for a Special Enrollment Period if you’ve lost your health insurance due to job loss. You just need to do this within 60 days of your employment ending.
The marketplace plans prices themselves are based on your total household income and household size. There is a large range of plan options, with different types of coverage and pricing, all based on your needs and individual ability to pay.
When looking at marketplace plans consider these advantages and disadvantages to help you make the best choice when looking for a health insurance plan.
Individual Health Insurance Advantages:
- Available to everyone: One of the primary goals of the ACA is to provide health coverage to people who might otherwise not have access to affordable healthcare.
- Plan Variety: Lots of plan/coverage options to choose from.
- Costs based on income: You may qualify for lower premiums and savings on your out-of-pocket costs, if you have a household income that applies.
Individual Health Insurance Disadvantages:
- Plan start dates: Coverage only starts on the first of each month after you have lost your previous coverage and enrolled in a Marketplace plan. So, if you need health insurance now, be sure you take this into account.
- Coverage: Plans with better coverage might be available through other options.
4) Individual Vision and Dental Insurance Coverage
Many of the health insurance options mentioned above do not include vision and dental insurance benefits, or the coverage might be minimal. So, you may find you still need dental insurance and vision insurance. Thankfully, you can buy individual dental insurance and vision insurance yourself. VSP® provides a variety of vision insurance plan options and through its partnership with Guardian will help point you to dental insurance options to help you complete your health insurance coverage.
With flexible pricing and payment options for individuals, couples, and families, VSP Individual Vision Plans are designed to be affordable and practical.
Whatever decision you make to get health, vision, and dental insurance coverage during this difficult time, it’s important to remember that only you know what you need and what is practical for you and your family.
Learn more about your vision and dental insurance plan options today. Once you’ve completed your vision plan enrollment, keep your eyes open for dental insurance plan options from Guardian Direct®
Information received through VSP Individual Vision Plans’ social media channels is for informational purposes only and does not constitute medical advice, medical recommendations, diagnosis or treatment. Always seek the advice of your physician or other qualified health provider with any questions you may have regarding a medical condition.
Your vision. Your way.
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