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SolveYourProblem
Article Series:
Health Insurance
Laid-off:
Your Health Insurance Rights
Providing
health coverage for laid-off workers is good health policy
for all employers. This can take away
some of the sting from being out of work and COBRA payments.
Tax credits for laid-off workers are also available and can
be a valuable element of a phased-in national strategy to assist
the uninsured. Laid-off workers can receive effective, temporary "bridge" coverage
between jobs using the COBRA law. These benefits will be the
same as with their employer but at a higher cost. There are
advantages in targeting this on this group for helping. Providing
health insurance to persons becoming unemployed will help keep
these people on the map so to speak. One of the biggest problems
with American health insurance after unemployment is the disappearance
of it. Most uninsured Americans had health coverage at some
recent point but then lost it, typically because of unemployment,
or some other reasons, such as aging out of a parent's policy
or wage in-creases that exceed public program limits.
Targeting
these people for aid or assistance in lower premium insurance
will help reduce the number of uninsured. And as
suggested by many American public opinion polls, there is more
than 90 percent public support for helping laid-off workers.
This addresses an important worry in the 165 million Americans
under age 65 who have employer-based insurance. They too are
afraid that a pink slip could end their health insurance. Helping
laid-off workers obtain health coverage, regard-Less of the
cause of their unemployment, would also remedy an inequity
created by the Trade Act. It is hard to justify covering unemployed
workers whose lay-offs result from foreign competition while
denying help to equally needy and hard-working Americans who
are laid-off for other reasons.
Moreover, a simple tax credit targeted to those who lose who
lose their jobs due to layoff would not risk unraveling or
jacking up an employer’s group coverage. Some policymakers
fear that such tax credits to assist the employed uninsured
could cause some businesses to drop coverage. Also young, healthy
workers could take up credits, leaving employers responsible
for the higher-cost group left behind. If credits were limited
to laid-off workers and not include working persons refusing
health care plans, this would be anything to worry about. One
national survey found that 52 percent of uninsured adults lost
health coverage because they or a spouse lost their job. No
other single cause of insurance loss was re-ported by more
than 12 percent of uninsured adults. The only thing these people
have to turn to is COBRA, which when unemployed can sometimes
be impossible to pay for.
The federal Consolidated Omnibus Budget Reconciliation Act
(COBRA) is for workers who lost health benefits through voluntary
or involuntary job loss, reduction in work hours, or transition
between jobs. This gives them the right to continue group health
benefits through their current plan. COBRA requires that employers
with 20 or more employees that offer group health plans must
offer a temporary extension of health benefits. Under COBRA,
employees, their spouses and dependent children are eligible
to continue coverage for up to 18 months following lay-off
or reduction in work hours. Employers are not required to pay
for continuing coverage as the did when the person was employed
with the company. The workers are responsible for the full
price of the plan and may be required to pay up to 102% of
the cost of the health plan
If your spouse or domestic partner is covered under employer-based
coverage you and your dependent children may be eligible through
that plan's dependent coverage. Again, employers are not required
to pay for such coverage, and you may be required to pay the
full cost of the health plan. For more information, contact
your spouse or domestic partner's employer. The only problem
with this option can be that you may have to wait till open
enrollment to be able to change the policy. Some employers
will only let changes to be made if there is a birth, death,
divorce or marriage taken place. Other than that most have
to wait 12-18 months for the next opportunity to add new people
or change their benefits.
Private
Health Insurance may be purchased by
anyone directly from any company that deals with health plans.
However, individual
policies are generally priced higher than those through a group
plan, and insurers can ask about your health history and may
exclude "preexisting medical conditions," deny coverage,
or charge less than healthy people a higher rate than they
charge healthy people. For more information contact the health
plan or insurance broker of your choice listed in the Yellow
Pages under "Health Plans" and "Insurance." When
deciding on a policy it is best to speak directly with an agent.
Make sure you get several different opinions before deciding
on a plan. Click here to to view health insurance quotes, compare plans side-by-side and apply for the most affordable health insurance within your budget. I did this myself (June 17, 2011) to change my health insurance policy. Saved me $84 per month (or $1,008 per year). It's my SolveYourProblem recommendation.
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by SolveYourProblem.com
: 2006
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