How Do I Locate Medical Insurance for the Unemployed?

No law mandates that employers must provide their employees with medical insurance. However, many employers choose to provide their workers with this benefit, paying all or a portion of the premium. In the latter case, the employee pays the remainder of the premium, which is payroll deducted. When employees terminate, they lose their employer-sponsored medical benefits. Still, there are ways to find medical insurance while unemployed.

Instructions

• 1

  Continue your medical coverage under COBRA. The Consolidated Omnibus Budget Reconciliation Act (COBRA) notes that employees can continue their medical insurance if they terminate from the company for reasons other than gross misconduct. If an employer had 20 or more employees in the previous year and offers group health plans to his employees, he should offer continuing coverage to the employee and his family under COBRA.

  COBRA requires the ex-employee to pay the entire coverage premium, up to 102 percent of the cost to the plan. Therefore, it can be quite expensive to maintain. Still, it offers the chance for comprehensive medical coverage under the same plan the employee had before terminating.

  When you terminate, the employer must send you a COBRA election notice no longer than 14 days after your termination. Thereafter, you have 60 days to decide if you would like to continue your medical insurance under COBRA. After electing coverage, you have 45 days to make the first premium payment.

• 2

  See if you can be added to your spouse's coverage. Loss of employment is generally viewed as a qualifying event, therefore even if the enrollment period has passed, you most likely can be added to your spouse's plan regardless of when you terminate. Further, being added to your spouse's plan is likely to be less costly than COBRA.

• 3

  Check with your local Medicaid office to see if you qualify for Medicaid, which offers health coverage to individuals with limited income. Because Medicaid is a state-administered program, you must check with your state health department for instructions on how to apply. Go to Medicaid's website to access their Contacts Database (see Resources). Select your state. For Contact Type, choose "All Contact Types." Under Organization Type, select "State Health Departments."

• 4

  Visit the National Association of Health Underwriters' (NAHU) website to locate a health insurance agent. The NAHU's database includes over 100,000 licensed insurance agents, brokers and consultants whose focus is helping large and small companies, plus individuals find health insurance coverage.