Have no idea what kind of insurance should you choose when you are out of work? No worries. Below are some major insurances you can count on: COBRA, the Health Insurance Marketplace and short-term health insurance.
COBRA, short for The Consolidated Omnibus Budget Reconciliation Act, is a health insurance program that gives workers and their dependents the opportunity to continue the health benefits provided by their employer for the time being when they become jobless or face a reduction in work hours. COBRA usually requires that applicants work for businesses with 20 or more employees. But chances are that the premiums will become higher than before since the part formerly covered by the employer has be to paid by the employees themselves now.
The current health plan can remain the same as it was
The coverage can last for at least 18 months
High standards should be met in order to become a qualified beneficiary
It is only accessible to state and local employees. Federal employees are excluded.
- Health Insurance Marketplace Plans
Health Insurance Marketplace is a service operated by governments that provides health plan options and services. It was established by The Affordable Care Act of 2010 (ACA), which is also known as Obamacare.
Special enrollment period is available for people who lost their jobs
It can be used when COBRA coverage is over.
Chances are you will be paying for unnecessary services.
Contradiction between cheaper premium and bigger network.
- Short-Term Health Insurance
Short-term health insurance is an insurance plan program available for people who are between jobs and have no health insurance plan.
Immediate coverage can be granted
Free cancelation is available
Some services are not included in the coverage
It is not available in some states such as California and New York