Health Insurance Options For the Recently Unemployed

Losing your job can be a serious blow to your finances, but losing your income is only the half of it, when you lose your job you also lose your health insurance. For Americans with medical issues this can be devastating. Unpaid medical bills is the number one reason for bankruptcy in the United States, and according to statistics there are over 46 million Americans that do not have health insurance. With layoffs and a failing economy, that number is expected to grow significantly. Since there is no universal health insurance plan to help with this scenario, what is a person to do if they find themselves suddenly without an income or health insurance?

Fortunately, there are options. COBRA Continuation of Coverage is one option. COBRA stands for Consolidated Omnibus Budget Reconciliation Act, a federal law that requires continuation of coverage for displaced workers. Unfortunately, COBRA is not always available so check to see if you may be able to use COBRA.

Short-term insurance and catastrophic health insurance are both options as well. Short-term medical insurance is a good option for those in between jobs or those waiting for their new health insurance to begin. It usually lasts for 1 month to a year, depending on what you need. If COBRA is unavailable to you and you do not have any major pre-existing medical conditions, this could be a great option. Catastrophic health insurance is a good choice if there are no major pre-existing medical conditions and you simply would like to hold insurance to help you in the case of a serious medical emergency that could potentially put you in serious debt. This type of coverage is for surgery, X-rays and hospital stays, but does not cover emergency room trips for simple

things such as the flu, or doctor visits. Catastrophic health insurance is for medical issues that could definitely devastate your health and your finances if you did not have the insurance.Medicaid is

an option if you are nearing poverty level, and local clinics can also be an option for free or low-cost healthcare. If you belong to a trade, professional or other organization you may be able to obtain association coverage as well. In addition, you may be able to buy individual health insurance directly from an insurance company, though unfortunately this option is usually quite expensive and can be difficult to obtain with pre-existing conditions.