I lost my health insurance, now what?

These are very uncertain and trying times. Many people are being directly affected in terms of their employment situation, some to the point of losing their jobs or having their hours reduced. And that can likely lead to a loss of employer-sponsored health insurance.

If this has happened or does happen, you are not alone. About half of American workers get their health insurance through their employer. Moreover, the Economic Policy Institute estimates that some 14 million jobs may be lost by the summer.

For those with insurance, the good news is that private plans as well as Medicare and Medicaid are waiving deductibles, co-pays and out-of-pocket charges for coronavirus testing. Fees for other services associated with the virus may also be waived. So it’s especially important to maintain coverage to avoid these kinds of expenses.

What Are My Choices?

First of all, if you’ve been let go from work and received a severance package, make sure you understand any options available to extend your insurance coverage.

As with any situation where someone needs to shift their health insurance, there are several options that should be carefully evaluated. Here are some examples to consider for how to buy health insurance without a job. Three key considerations are your state of residence, current monthly income (including sources like unemployment insurance), and projected total income for the year.

COBRA

The COBRA program extends health insurance for up to 18 months. Find out from the human resources department whether it’s available to you. It may also cover your spouse and dependent children, if they were covered under the employer’s plan. You will basically maintain the same plan that you had as an employee.

However, if the employer was picking up a portion of the cost, you will now have to cover that on your own. Plus, there is a 2% administrative fee. In other words, your cost could increase significantly. Once you’ve received a notice about COBRA, you’ll have 60 days to make a commitment.

Marketplace

Several states, including California, are reopening their health insurance marketplaces in response to this crisis. For example, the Covered California marketplace is now open until December 31 to help those seeking insurance coverage.

There are also several situations whereby you may be able to obtain coverage through a marketplace at any time. They are called “qualifying life events” and include various causes for losing coverage, such as moving into a new state, getting married and having a child. Make sure to check the details in the state where you reside.

A significant advantage of marketplace plans is the potential level of subsidy for which you may be eligible. These subsidies can be quite generous or even result in no premium at all.

Other Options

Additional possibilities for regaining health insurance coverage can include getting added to an employer-sponsored plan covering a spouse, partner or family member. You’ll need to scope out your options quickly, since you may need to act within 30 days of losing your previous coverage.

Depending on your income and where you live, you may be able to apply for Medicaid which provides coverage for low-income people and others in need. Medicaid is typically free or has a nominal premium. Check your state’s Medicaid agency website for details and to get started.

Short-term plans can seem attractive as a stop-gap with lower cost than private personal coverage. But be sure to read the details, since coverage may be significantly limited (including coverage for coronavirus). If you live in California, then it's important to know that the sale or renewal of short-term plans was banned as of 2019.

Finally, you can simply do some research and obtain a private, personal policy. This alternative entails the same process as any other time you might be looking for coverage in terms of balancing factors such as extent of coverage, deductibles, co-pays and co-insurance, etc.

Help Is Available

As you can see, the upside here is that there are several options for folks who experience a loss of job health insurance through their employer-sponsored coverage. The challenge is in determining the best option for your individual needs.

KeenanDirect can help you sort these options out and find the solution with the right combination of timing, coverage and cost. You’ll find expert guidance, one-stop access to major carriers and plans, and enrollment assistance. Visit www.keenandirect.com to learn more.