No matter the circumstances, losing a job can feel scary. Not only is your income cut, but so are other essential benefits you and your family need such as health insurance. The good news? You have options when it comes to health insurance, likely in the form of COBRA coverage or a plan under the Affordable Care Act (ACA). The bad news? Shopping for affordable health insurance options can be confusing and time–consuming! Here, we offer a quick breakdown of COBRA and ACA coverage, as well as tips for finding the right coverage should you lose your employer-provided healthcare.
Out of a Job: What are my Health Insurance Options?
COBRA Coverage
If your former employer is still an operating business, you can extend your employer-sponsored healthcare plan through the federal law known as COBRA.
If you go this route, you can pay out of pocket for up to 18 months for coverage under your old plan. The drawback here is that COBRA plans can be costly. You may have even heard a friend or family member complain about the cost of COBRA before.
Why does COBRA coverage seem so expensive? When you were employed, you were required to pay only a percentage of your total monthly health insurance premium. Your workplace was covering the rest of the premium balance (typically around 50-80% of total premium). When you elect COBRA coverage, you are responsible for 100% of the premium, plus a 2% administrative fee!
Concerned about the cost of COBRA? Contact us! The team of McKnight & McKnight Insurance can help you quickly find new coverage if you’ve lost a job or need a new plan. Usually, in a short 10-minute call, we can find out what your old policy covered and present you with new, more affordable plan options.
Coverage Under the Affordable Care Act
If the high cost of COBRA is not an option after losing your job, you can purchase an individual or family health insurance plan under the rules of the Affordable Care Act (ACA).
Typically, you would have to wait for the annual open enrollment period to sign up for a new plan, but the loss of employer-based coverage is considered a “qualifying life event”, and therefore, you have a 60-day window to enroll.
Licensed agents at McKnight & McKnight Insurance Solutions can help you navigate your options both ON and OFF of the Health Insurance Marketplace. Concerned about the affordability of these comprehensive plan options? We can even help you determine if your household is eligible for a health insurance subsidy.
Catastrophic Plans
Catastrophic plans cover all the basic benefits of ACA plans but are typically a lot more affordable. These plans may have a higher deductible and are a great choice for people that do not have any immediate health issues or health history. If you are looking to save money by having lower monthly premiums and risk paying higher out of pocket expenses—if and when you need to—then this is a great way to cut costs if you are on a budget. Those with health issues will need to opt for a more traditional, comprehensive health insurance plan. Schedule a quick phone appointment with us to discuss the option that is right for you.
Tips for Finding the Best Insurance to Fit Your Needs
After losing your job, we know you may have a lot on your mind. Here’s how to make sure you find new coverage that you can afford quickly:
Compare your options.
Tons of options are available to you, but it is important to do your homework and compare plans from multiple insurers. We offer simple, fast and friendly solutions all in one place. We’ll save you time and money by comparing plans and presenting your options. Best of all, there is no cost to work with us!
Look for plans that cover your prescriptions and existing doctors.
If you want to continue seeing the same doctors or if you take prescription drugs on a regular basis, your plan needs to have your existing doctors in-network as well as affordable pharmacy options. A licensed agent at McKnight & McKnight Insurance Solutions can help prioritize your options based on these factors.
Determine if you’re eligible for subsidies.
In most states, you can qualify for government subsidies if your annual household income is less than 400% of the federal poverty level – $51,000 for an individual or $105,000 for a family of four. These subsidies are applied to your monthly premium and can help to make your new health insurance more affordable. Schedule a phone appointment today—we’ll help you determine if your household qualifies for subsidies through the ACA.
Be aware of deductibles and out-of-pocket costs.
Time and time again, insurance shoppers only look at the monthly premium. However, understanding the deductibles, copays, and other out-of-pocket costs are just as important!
A low-premium plan with a high deductible is great for the young and healthy, but those with chronic health conditions may want to consider a comprehensive plan with a lower deductible.
Ask for help.
Shopping for health insurance can be complex! Luckily, you have a trusted and knowledgeable resource on your side offering simple, fast and friendly solutions. Speaking with a reputable, licensed insurance agent at McKnight & McKnight Insurance Solutions can help you move forward quickly with the best health insurance plan for your needs.
Lost Your Employer-Sponsored Health Insurance?
If you’ve lost your job and need a new healthcare plan, call our Tampa, FL based licensed insurance agents. We are here to answer any questions you may have and will help you find the best health insurance to fit your needs – at no additional cost to you!
We understand things may be harder right now, so we care about helping you make things as easy and stress-free as possible. If you need new health insurance due to a recent job loss, we can help. For more information about our company or if you would like to schedule a FREE consultation, please contact us at (866) 525-0368 or CLICK HERE to schedule your phone appointment!
