If you recently found yourself unemployed, of course, the first panic is how you’ll pay the mortgage or other bills. After that comes the realization that you no longer have a company-paid health insurance plan. You have several options for health insurance, depending on your situation and health.
Health insurance for unemployed people can be personal plans or COBRA plans. If you have a health condition, you probably should use the company provided a COBRA option. The option of taking COBRA can provide uninterrupted coverage for all your conditions, even those pre-existing ones. However, you’ll find the price you pay for COBRA is unreasonably high. That’s because you no longer have the company adding their funds to the premiums. It’s all out of your pocket.
For those lucky enough not to have a health condition, health insurance for unemployed people can be short-term policies or permanent health plans. If you believe that you’ll have another position soon, or know that you’ll have another type of permanent coverage soon, short-term health insurance can be an inexpensive answer for health insurance for unemployed people. You buy the length of coverage you wish to have, often it’s between a few months and a year. Some policies allow you one or two renewals. However, if you find you’re seriously ill at the time of renewal, you may not qualify for coverage so get the longest you feel is necessary.
You also select the annual deductible and co-insurance amount when you make the selection. There are simple questions to answer about your health history and as long as you don’t answer yes to any of them, the company normally covers you at the date of postmark or telephone call, if you secure the coverage by phone. You can also buy short-term health policies online and receive immediate coverage, normally the next business day if it’s after hours.
The premium for short-term health insurance is often far more inexpensive than long-term health insurance and excessively cheaper than COBRA, the first alternative health insurance for unemployed individuals.
Long-term health insurance requires underwriting. The insurance company looks at your health history and your answers to the health questions. Then the health insurance company offers you the premium quoted or a higher premium, based on your answers. While you can find some bargains in long-term individual health insurance coverage, it’s not as inexpensive as short-term coverage.
When selecting long-term health insurance for unemployed individuals, look for the biggest bargains. You can often find more inexpensive plans if you used those with managed care options. Managed-care plans offer a group of specific health care providers from which to select. They made an agreement with the health insurance company to reduce their rates in order to get business. The company passes the savings on to you and provides cheaper health insurance for unemployed people and those who have jobs.
Another bargain for health insurance for unemployed individuals is a health savings account and a high deductible health insurance plan. The price on the high deductible insurance is far less than traditional plans because you pay more out of pocket. You put your savings into the health savings account where you can tax-deduct it and allow it to grow tax-free. When you take it out to pay for any health care cost, it comes out tax-free. If you don’t use it for one year, you Health Insurance for Unemployed People keeps it for the next. The money is yours forever to use for health care needs. This type of plan is a great health insurance plan for the unemployed and for those with jobs.