What Can I Do If I'm Let Go From My Job & Lose My Medical Insurance?

If you are let go from your job and lose your health insurance, there are several options available to you in covering your health care needs. The Consolidated Omnibus Budget Reconciliation program, typically referred to as COBRA, is one option. If you do not qualify for COBRA coverage, there are state-funded programs to turn to. If all else fails, there are supplemental policies that don't provide full coverage but are a good stop-gap measure.

COBRA

• COBRA is a federally mandated program Congress adopted in 1986. It provides for the continuation of health coverage after leaving a job, but you have to pay the entire premium. Qualifying for COBRA involves leaving or being let go for reasons other than gross misconduct from a private employer with more than 20 full-time employees during the previous year. Government and church agencies are exempt from COBRA laws.

  Your employer is legally obligated to send you information about COBRA following your job loss. It will detail the premium, which is typically higher than when you worked because your employer picked up part of the cost. With COBRA, the coverage you had in effect at work is the same coverage you receive. There are no medical questions and there is no lapse in coverage. It is a continuation of coverage option available to you for 18-36 months, depending on several variables.

State Programs

• State medical programs may be an option for you if you are not eligible for COBRA. State programs are generally based on your current income and medical needs. Each state sets its own criteria about eligibility, with some states making it easier than others to obtain benefits. Your local department of human services or welfare office will be able to determine your eligibility. Some programs have a monthly spend-down amount. This means you must incur the spend down amount in medical bills before the state program kicks in.

Supplemental Programs

• Supplemental medical and prescription programs are available to just about everyone, regardless of past medical history. A supplemental policy typically pays out a cash benefit for each covered event. For example, your policy may pay $100 for each day you are in a hospital.

Prescription Programs

• There are hundreds of prescription discount programs available to you without medical questions or other qualifiers needed. You can apply to most of them online or by phone. You fill out a simple application and receive a discount card to carry in your wallet. The card provides discounts on hundreds of medications at specific pharmacies. Most discount provider sites list all covered drugs and the amount of discount you will receive from each one. There are paid prescription programs available as well, however the free ones offer the same benefits and derive their profit from the pharmacies that support them.