Health Insurance After Layoff

Health Insurance After Layoff
by: Bernz Jayma P.



The economic crisis is making it hard for everyone to earn a decent
living. During the last year, millions of Americans lost their jobs
because of the recession. But aside from the emotional and financial
consequence of losing a steady paycheck, there are other concerns you
need to deal with as well. One of the issues that a lot of laid-off
employees are concerned about is their health care.

An employer effectively stops paying for the employee’s health care on
the last day of the month when employment ended. It is critical for a
person to look for health insurance while he is in-between jobs. This is
because even if he finds employment immediately, his health coverage will
only restart after 30 days of employment on the first day of the next
month.

There is at least a two-month gap that should be filled. In addition, a
person can be considered lucky if he is able to find work immediately.
Today’s tough economic times have effectively halted hiring in a lot of
industries. Below are some alternatives a laid-off employee can look into:

Short Term Medical Insurance – this health insurance plan can range from
a single month to three years. It has been specifically designed to fill
the gap from one plan to another. This insurance is inexpensive but it
does not cover the cost of treating existing medical problems. Another
drawback is that it also cannot cover serious long-term illnesses and
pregnancy. But those with predictable expenses such as prescription and
outpatient therapy should consider this insurance.

COBRA – if you worked for a company with 20+ employees, you are allowed
to keep your health insurance for up to 18 months at your own expense.
Because of its high monthly premium, a lot of people avoid this option
unless they have an existing condition that requires ongoing medical care.

Individual Conversion – this has the same results with the COBRA option
but it is designed for the employees of smaller enterprises. Individual
conversion allows employees to convert their program from a group plan to
an individual plan without the need to provide eligibility requirements.

These three options allow employees who had been laid-off to enjoy
medical benefits until their next employment.

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About The Author
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog,
dedicated to helping people expand their knowledge about their personal
finances. Learn up to date investing strategies and retirement planning
by visiting http://www.Invesmint.com