Tips for Temporary Insurance Coverage if Over 50

Losing your job often means losing access to your health insurance, a discomforting position for anyone to be in. If you're past the age of 50, you know that maintaining access to your primary care physician, prescription drug plan, and other health services is important. There are a number of options available for older Americans to help them obtain temporary insurance coverage until they find a new job offering health benefits.

COBRA

• If your former employer is still in business, offers health benefits, and employs 20 or more people, you are eligible for Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage. This provides access to the same insurance you had while working as long as you pay 100 percent of the cost for that insurance plus a 2 percent fee.

  Yes, this option is expensive, but if you lost your job sometime between September 1, 2008 and December 1, 2009, the federal government will pay 65 percent of your COBRA costs for the first nine months of unemployment. Check with your former employer regarding this option (see Reference 1).

Private Insurance

• If COBRA coverage isn't available, explore your options through private health insurance providers in your area. Some of the national names offering health insurance coverage directly to consumers include Blue Cross Blue Shield, Aetna, Anthem, and Humana. Not every insurer is approved by your state's insurance commissioner, so use a quote service such as ehealthinsurance.com to find insurers and plans to serve you. Private insurance is also an option for those whose COBRA coverage has expired after the 18-month eligibility period has ended. Examine private insurance plans serving your state (see Reference 2).

Disability

• If you are out of work and disabled, you may be eligible for Social Security disability benefits. Under the terms of what Social Security offers, you must be disabled for five months before you can receive benefits beginning the sixth month. In addition, you may qualify for Medicaid, which is a federal government program offering health benefits to America's poor, disabled, and impoverished elderly people. Contact the Social Security Administration and Medicaid for more information.

Tips

• Make sure that you have at least basic health insurance coverage until you are able to find a job or are eligible for other programs such as Medicaid. Without insurance, just one visit to the hospital can be financially devastating, saddling you with bills that may take years to pay off.