How to Extend Health Insurance Coverage

If you own your own individual health insurance policy, continuing your coverage is usually not a concern: Just keep paying your premiums until age 65, at which time you will usually qualify for Medicare. If you get your insurance via a workplace group insurance plan and lose your coverage, the situation is more complicated. You can purchase an individual policy on the open market (if you qualify), you can convert your group policy to an individual policy in some states, or you can extend coverage via COBRA.

Instructions

• 1

  Speak with your supervisor or human resources representative at work. If your employer is large enough to be subject to health insurance continuation requirements under the Consolidated Omnibus Budget Reconciliation Act of 1986, they are required by law to provide you with a statement of your rights and benefits under COBRA.

• 2

  Contact your company's group insurance carrier. Ask about converting your group health insurance to an individual plan. Some states require the group company to sell you a comparable individual policy. Chances are you will lose your employer subsidy, so your out-of-pocket expenses may go up. The company may also charge a surcharge above the total premiums formerly paid by you and your employer, to account for the extra cost of administering a stand-alone policy. Each state has different regulations.

• 3

  Obtain your certificate of credible coverage. If you have had health coverage, either on your own or via an employer's plan for the last 18 consecutive months, there is no requirement for you to meet another waiting period in order to get coverage from another plan. In order for this provision to apply, however, you may not have a gap in coverage between your old plan and your new plan of more than 63 days, under the Health Insurance Portability and Accountability Act.

• 4

  Compare your COBRA options with other insurance carriers on the market. If you are young and in comparatively good health, you may be able to find much more affordable insurance by shopping around. Compare a variety of insurance plans, including health maintenance organizations (HMOs), fee-for-service plans and high-deductible health plans with health savings accounts. If you have some health challenges, you may not be able to find affordable health coverage. However, if you have maintained coverage under a qualified plan with no break in coverage of more than 60 days, federal law requires the new plan to give you coverage.

• 5

  Enroll in the plan that suits your needs and budget. You will need to fill out an application, either in person or online, and answer a series of health questions. Generally, you are covered as soon as you provide an agent with the first month's premium payment, provided you are medically qualified for the coverage.