What are Your Health Insurance Rights during a Lay-off
Health insurance coverage for laid-off workers is an excellent benefit all employers should consider. Health insurance coverage for unemployed workers can take away some of the unpleasentness from being out of work (and COBRA payments!). Tax credits for jobless workers are also available and can be a precious element of a phased-in national strategy to help the uninsured. Unemployed workers can receive useful, temporary "bridge" coverage between jobs by means of the COBRA law. These benefits will be the same as with their prior company but at a elevated cost. There are advantages in this. Providing health insurance to unemployed individuals will help keep these people on the map so to speak. One of the major problems with American health insurance after losing one's job is the disappearance of that insurance! Most uninsured Americans had health coverage at some recent point but then lost it, typically because of unemployment, or some other reasons, such as aging out of a parent's policy or wage in-creases that exceed public program limits.
Targeting these people for assistance in lower premium insurance will help cut the number of uninsured. And as recommended by many American public opinion polls, there is more than 90 percent community support for assisting laid-off workers. This addresses a significant concern in the 165 million Americans under age 65 who have employer-based insurance. They too are afraid that a pink slip could end their health insurance. Helping jobless workers obtain health coverage, despite the cause of their unemployment, would also remedy an injustice created by the Trade Act. It is hard to rationalize covering unemployed personnel whose lay-offs result from foreign competition while denying help to equally disadvantaged and reliable Americans who are laid-off for other reasons.
Furthermore, a simple tax credit intended for those who lose their jobs owing to a reduction in force would not risk unraveling or jacking up an employer’s group health insurance coverage. Some policymakers fear that such tax credits to assist the jobless uninsured could cause some businesses to drop their coverage. Also young, healthy workers could take up credits, leaving employers accountable for the higher-cost group left behind. If credits were limited to laid-off workers and not include working personnel refusing health care plans, this would be nothing to worry about. One national study found that 52 percent of uninsured adults lost health coverage due to they or a spouse lost their job. No other single cause of insurance loss was re-ported by more than 12 percent of uninsured adults. The only thing these people have to turn to is COBRA, which when out of work can sometimes be impractical to pay for.
The national Consolidated Omnibus Budget Reconciliation Act (COBRA) is for workers who lost health benefits through voluntary or involuntary job loss, reduction in work hours, or transition between jobs. This gives them the right to continue group health benefits through their current plan. COBRA requires that employers with 20 or more staff members that offer group health plans must offer a brief extension of health benefits. Under COBRA, employees, their spouses and dependent children are qualified to continue coverage for up to 18 months following lay-off or reduction in work hours. Employers are not obliged to pay for continuing coverage as they were when the person was employed with the company. The workers are accountable for the full price of the plan and may be required to pay up to 102% of the cost of the health plan
If your spouse or domestic partner is covered under employer-based insurance coverage you and your dependent children may be eligible through that plan's dependent coverage. Again, employers are not obligated to pay for such coverage, and it may be compulsory for you to pay the full cost of the health plan. For more information, contact your spouse or domestic partner's employer. The only problem with this choice can be that you may have to wait until open enrollment to be able to change the plan. Some employers will only let changes to be made if there is a birth, death, divorce or marriage taken place. Other than that most have to wait 12-18 months for the next chance to add new people or change their benefits plan.
Private Health Insurance may be purchased by anyone directly from any company that deals with health insurance plans. However, personal policies are normally priced higher than those through a group plan, and insurers can ask about your medical history and normally exclude "preexisting medical conditions," refuse coverage, or charge less than fit people a higher rate than they charge healthy people. For more information contact the health plan or insurance broker of your choice listed in the Yellow Pages under "Health Plans" and "Insurance." When deciding on a health insurance policy it is best to speak directly with an insurance agent. Also, for your own peace of mind, make sure you obtain several different opinions before finally deciding on a health insurance plan.
