Options of Health Insurance for Unemployed

With more and more people becoming unemployed, health insurance for unemployed has become a major issue. When faced with job loss it is hard to imagine losing your health insurance coverage as well. Most states have laws in place that allow a person to continue carrying their health insurance policy through their former employer for a set amount of time after termination. If your state does not have this type of law in place there are a few other options for finding affordable health care coverage.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 allows the unemployed the choice of continuing their health care plan. This plan was placed to create a health insurance for unemployed option for those who become unemployed unexpectedly. Under this act a person can choose to keep their plan for up to 18 months. This allows a person to either find employment or a new health insurance plan. If a disability occurs during the first 2 months of a COBRA plan the policy is extended to 29 months.

While choosing to stay on your current health insurance plan may sound like a good idea, it is important to remember that you will be required to pay the full amount of the premium as your employer will no longer be taking care of part of it. This can become a financial burden, especially when your income will have decreased due to unemployment.

It is advisable to look for a cheaper health insurance for unemployed plan. The affordability of another health care plan will depend directly on the health of you and your family. If you are fairly healthy with no existing medical conditions a cheaper policy will be possible. However, if you or another member of your family has a pre-existing medical condition the COBRA plan may in fact be your most affordable option.