5 Options for Healthcare Solutions When You've Been Laid Off

If you’ve been let go from your job or lost your health benefits here are your options for health insurance and some affordable alternatives too. 

You are either part of the 12 million people who was laid off or furloughed due to COVID 19, or you know someone who did.  It’s scary to lose your job under normal conditions. Even worse is losing your job and health benefits at the start of a global health crisis. It may seem hopeless but you have a few options to get some health protection in place for you and your family.

COBRA - Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

If you had employer sponsored health insurance before getting laid off, you can keep it up to 18 months under a federal employment law known as COBRA. Unfortunately, your former employer is not obligated to pay your monthly premiums. You now have to pay the full premium. Most individuals have sticker-shock when they see the real cost of COBRA without the employer paying part.  This leaves almost everyone searching for COBRA alternatives.

HEALTHCARE.GOV

Another option to get health insurance after a layoff or furlough is the government website known as the National Healthcare Exchange. Federal employment law allows you 60 days to sign-up for alternate health insurance after losing your job. If you miss the window you have to wait until annual open enrolment in November. If you can show that your income is below a certain amount you could qualify for a premium subsidy from the government. If your income is too low to even afford the exchange options you should consider contacting Medicaid. 

MEDICAID

Under the Affordable Care Act, many (but not all) States elected to expand Medicaid to make it available to more low-income adults. If your state is one that is expanding Medicaid, this chart will show if you qualify based on your family size and income.

Medicaid is government paid health insurance for lower income families and children, elderly, and Americans with disabilities.  Some state programs cover all adults below a certain income level.

If your state did not participate in the Medicaid expansion there’s still a few things to consider. For example children in low-income homes could qualify for CHIP (Children’s Health Insurance Program). You can complete an application in the Health Insurance Marketplace or by calling 1-800-318-2596.  Be patient and persistent since there are a lot of people trying to get through or online right now.

Supplemental Insurance 

There are other health insurance options that offer financial protection against certain health expenses. Supplemental insurance won’t pay the entire cost of a medical episode but it can help. This kind of insurance is meant to help with your regular household expenses if you are sick or injured and can’t work. These so-called ‘fixed-benefit’ plans can also be purchased to cover specific things like: accidents, cancer, critical illness, and even dental. They pay you a fixed amount in cash if you have a covered incident. There are many insurance companies writing fixed benefit policies like Aflac, Aetna, and Cigna just to name a few. Premiums for supplemental insurance are substantially less than health insurance because the coverage is so limited.

MEDICAL COST SHARING

Medical cost sharing has a 30+ year track record. Just to be clear this is not health insurance, this is a different way to pay for medical expenses. Instead of counting on an insurance company for coverage, medical cost sharing members rely on a healthy like-minded community to share their medical expenses.