Health Benefits for the Unemployed

Since many Americans get health insurance benefits from their jobs, they may lose their health insurance if they become unemployed. Of course, medical needs don't disappear when someone loses his job, and if he doesn't have a paycheck coming in, he may have trouble paying for the health care services he needs. Sources of health benefits exist for some unemployed workers, however.

COBRA

• The Consolidated Omnibus Budget Reconciliation Act of 1985, otherwise known as COBRA, requires most employers that offer group health plans to employees to allow employees that leave their jobs to continue their insurance for at least 18 months after termination of employment. Recipients of COBRA benefits must pay the full cost of insurance premiums, however.

Medicaid

• In some states, unemployed adults can qualify for Medicaid. Eligibility criteria vary from state to state. In some states only children, the elderly and the disabled can get Medicaid, but in many states, parents of qualified children can also get Medicaid and some other adults with low incomes and limited resources can also qualify. To find out if you qualify for Medicaid, visit the welfare agency in your county. Medicaid covers a variety of health care services for those that qualify including visits to doctors, hospitalization, emergency room care, laboratory tests, prescription medications and mental health care.

Other Options

• People who become unemployed due to disabilities may qualify for Medicare after they have been disabled for two years. Many communities have clinics that offer reduced cost care to people with low incomes. Your local health department or United Way can probably direct you to such resources in your area.

Costs of Benefits

• The cost of COBRA varies depending on your insurance policy, but it can be rather costly. People do not have to pay for Medicaid benefits, but Medicaid recipients may have co-pays for some health care services they receive. People must pay monthly premiums for Medicare benefits. The cost for services at clinics offering reduced-fee care varies from clinic to clinic and usually depends in part on your income.

Applying for Benefits

• Your employer will send you information about signing up for COBRA if you qualify. Apply for Medicaid benefits at the welfare agency in the county in which you live. Apply for Medicare at your local Social Security Administration office (see Resources) or call 800-772-1213 to find out if you qualify. Check with local clinics about how to apply for reduced-cost services; all have their own policies and procedures.