Health insurance options for workers in transition

When people find themselves laid off or when they switch jobs to one without health benefits, keeping affordable health insurance coverage is an important consideration.

The most important thing to know is: Do not put this decision off. You have 60 days to select Cobra retro-active to your last day of coverage. If you let your insurance lapse for 63 days or more you will be subject to exclusions in coverage for any preexisting conditions. If you do have pre-existing conditions, you may not be eligible for individual, underwritten coverage.

What are your options?

The first and easiest option is to continue your previous employer’s insurance through Cobra. This however can be expensive, as you must now pay the full premium your employer was paying and sometimes add an extra 2% for administrative fees.

If you are healthy, you may qualify for an individual policy, either with the same carrier or with a different carrier that includes your doctors in their network. You can lower your rates substantially, especially if you are healthy, do not take any medications and rarely see the doctor; by choosing a high deductible plan. If you choose an HSA (Health Savings Account) compatible high deductible plan, you could fund your deductible with pretax dollars and end up with a plan that protects your family, while giving you a tax benefit.

For individuals who have decided to start their own business, small group insurance may be an option. Health insurance could then become a business tax deduction. To get the best tax benefit from your health insurance dollar, and for help starting your own business, you may want to consult a financial advisor.

Both individual and group health insurance offer a confusing array of choices. To help you sort through them and find the best plan to fit your needs, call an independent broker for a quote. You pay the same premium whether you get the quote from an independent agent or directly from the carrier, but and independent broker is not limited to one insurance companies plans and can compare premiums for all available plans. There is no cost to you and they will put their expertise to work to help you sort through the myriad of plans available.

So if you are facing a change in jobs, don’t put off thinking about your health insurance options. Protect your assets and get the best from you health insurance dollar.