When you have either lost your job or changed employers, one expects that your health insurance coverage will change, and understanding the available options shall help toward maintaining continuous coverage. Normally, you would be denied this facility under the employer-sponsored health insurance plan in case you are no longer working with them. This time transition is something one must plan carefully to avoid gaps in coverage and manage any other potential health care needs.
One of the big decisions you’ll need to make when you’ve lost your job is COBRA coverage. Under the Consolidated Budget Reconciliation Act, otherwise known as COBRA, you’ll have a way to continue your old employer’s health insurance plan, though this is only temporary—up to 18 months, but sometimes extending to 36 months in special circumstances. Even while COBRA can permit continuity of coverage, it is usually quite expensive since you must pay the entire premium, which includes that part previously covered by your employer, plus a small administrative fee.
You can also get health insurance coverage through the Health Insurance Marketplace. When you have lost your job not during a limited time of set open enrollment, you can still look for coverage via the Marketplace. Marketplace plans vary and may include income-based subsidies that lower the cost of premiums. Losing job-based coverage is a qualifying event, so it allows for an SEP to be able to get a new plan outside of the standard enrollment periods.
If you change jobs, your new employer may have a health insurance plan in place. You’ll usually be able to enroll in the new plan during the annual open enrollment period or during a special enrollment period due to this change of employment. Depending on timing in respect to your job change, you may briefly fall without coverage—leaving one job and beginning with your new employer. It is crucial, though, to make sure the end date of the old coverage and the start date of the new coincide to the greatest extent possible—that way, no gaps are left open.
Otherwise, it will certainly be wise to research details of a new health insurance plan regarding its coverage, premiums, deductibles, and the provider network details. In this manner, both unexpected medical expenses and unmet health care needs are avoided.
