7 Essential Steps to Take When You Lose Your Health Insurance

Posted in Health Care , Health Insurance

April 8th, 2009

Unfortunately, when you lose your job the pain doesn’t stop there. Losing your job means losing your group policy health insurance, too. Whether you’ve been laid off or your company has cut your hours (and thereby, your benefits), finding yourself without health insurance can be a frightening and painful realization.

Though you might be tempted to risk going without health insurance, there are countless scenarios that could land you in a hospital bed with mounting bills (on average, a day in the hospital costs $2,000 and that’s without all the medications and procedures that normally go with it) that could totally deplete your savings.

If you find yourself in this position (we’re hoping you dont!) here are 7 steps you need to take:

1. Research COBRA:COBRA coverage is available for up to 18 months after termination of employment and insurance benefits for both you and your dependents. Allowing you to maintain your same insurance coverage and benefits, it does come at a cost: you have to pay the full premium yourself, up to 102% of the cost of the plan (typically between $400-700 per person). However, if you have a pre-existing condition that requires regular medical care, this will be your best, most comprehensive option.
2. Try to get onto your spouse’s plan: This may also be more expensive than your old plan, but if your spouse is employed and receiving health benefits, being added to his/her policy is another sure-way to insure your health and generally avoid the coverage rejections that come with individual policies.
3. Research HIPAA: If you’re having trouble finding a suitable plan (through your spouse, COBRA or an individual policy) rest assured knowing that you’re protected with the Health Insurance Portability and Accountability Act. Under this law, at least one insurer in every state must sell you a health plan if you had 18 months of coverage without a break of more than 63 days, the last day of your coverage was through an employer, and you dont have COBRA or have already exhausted the 18 months. Also good to know: under HIPAA, providers cannot exclude coverage of pre-existing conditions (though they can charge higher-than-average premiums).
4. Make sure your kids are covered: Look into CHIP (Childrens’ Health Insurance Program) for your state to protect your most valuable asset. CHIP is a government-funded insurance program that provides health insurance for eligible, uninsured children.
5. Talk to your doctor: If you’re really stuck and feeling a financial crunch, don’t be hesitant (or too proud) to ask your doctor for help that’s what they’re there for, after all. Ask about discounted rates and options of cheaper (generic) drugs for those with a lower income or no health insurance.
6. Take advantage of free clinics: Yes, they can cost you a whole day waiting around to see a doctor, but the cost is minimal in comparison to the costs you could incur in the long run by not receiving regular check-ups or seeking attention when you need it. Either low-cost or free, local clinics are a drastically more affordable place to seek medical care than emergency rooms where the cost is at least ten times greater.
7. Take care of yourself! Perhaps the most important step on this list, taking care of yourself is a great way to prevent health problems and the potentially expensive treatments they require. More than just eating right, exercising and quitting bad habits, it’s about following through with all preventative health care measures like regular check-ups, vaccinations and screenings for complications.