Health Insurance and a New Job

Employment is a fluid thing--we can find a new job, get laid-off, or decide to go into business for ourselves. At these times it is important to take into consideration health insurance coverage options for ourselves and family.

It's the Law-COBRA

Let's say you quit your current job and get hired at a new one. But the new one says it will be 90 days until you can join their group health insurance plan. This is where COBRA comes in. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you as a former employee to continue the health insurance coverage you had at your old job, at your own expense. This safety net helps you and your dependents maintain coverage until either you join another group policy or get an individual health insurance policy.

According to the Insurance Information Institute (III) COBRA is available to you if:

  • You leave a company and become unemployed or self-employed for up to 18 months.
  • You are a widow or widower or child of an employee who dies while working for the same company for three years or more.
  • You are the divorced spouse or child of an employee who has left the company he or she was employed at for at least three years.
  • You are the child of an employee who left a job and have not yet reached age 23.

    • Striking Out on Your Own

    According to III, 29.6% of those who don't have health insurance said the reason was because they lost their job or are unemployed, 14.1% say it is because their current employer doesn't offer health insurance or the insurance company refused them. In these situations it may be time to get an individual health insurance policy.

    Getting an individual health insurance policy can seem daunting. Here are a few things to take into consideration when choosing a policy:

  • What will my monthly premium be?
  • Should I try to insure most of my medical expenses or just the large ones?
  • What deductibles will I have to pay out-of-pocket before insurance starts to reimburse me?
  • After I have met my deductible, what percentage of my medical expenses is reimbursed?
  • How much less am I reimbursed if I use doctors outside the insurance company's network?

    • Also, III recommend that you make sure your new policy will cover the services you have been used to in the past such as doctors, labs, medications, pre-existing and chronic conditions, prenatal/labor-delivery/maternity treatment and alternative therapies such as acupuncture or chiropractic.

    Reducing Your Expenses

    You can keep your health insurance coverage costs down by making sure you have the best rates. Use our online health insurance questionnaire to compare online health insurance quotes and to help you find the best rates and coverage options for you and your family.