What are your options for keeping health insurance after leaving a job?

You may not immediately lose your health insurance if you decide to leave your job. Regardless of the reason you quit your job, many companies are required by federal and state regulations to offer continuation of health insurance. Let’s take a look at the alternatives for maintaining health insurance after leaving your employment.

If you recently quit your job or are considering it, you will need to find a means to keep your health insurance coverage. Here are a few options to consider.

COBRA

Most people can continue to have health insurance after leaving their employment by signing up for COBRA. Thanks to the Consolidated Omnibus Budget Reconciliation Act (COBRA), any employee who is fired or leaves their job is still eligible to continue on their previous employer’s group health insurance plan. If your business employs more than 20 people and you were already a member of the group insurance plan at the time of termination, you will be qualified for COBRA coverage. However, if your employer paid a portion of the cost of your insurance when you were employed, be prepared for increased monthly premiums. Your employer will stop paying for your health insurance when you leave your position.

Conversion policy

You can convert your employer’s group insurance coverage into an individual health insurance policy after quitting your employment by purchasing a health insurance conversion policy. Not every employer offers conversion coverage, so be sure to ask your company about its policy. In some situations, you may only be eligible for a conversion policy if your COBRA coverage has run out (usually after 18 months) or if your health insurance hasn’t lapsed.

Keep your current health insurance

If you and your former employer agree that it is in everyone’s best interests, you can continue to be covered by your current health insurance policy even after quitting your work. To discover if there are any possibilities for extending your health insurance beyond COBRA, check your severance package. If there is, you can continue to get coverage as if you were still employed. If it doesn’t, and you left your job for reasons that weren’t your fault, you might be able to reach an agreement with the legal and human resources departments of your previous employer.

Short-term health insurance

A short-term health insurance plan can be able to help if you don’t have other health insurance but anticipate having a considerable amount of medical bills. You are only covered by these short-term plans for a period of three months. Short-term health insurance plans don’t have to match your current coverage. However, the insurance company may deny coverage for medical reasons, such as a prior disease or illness.

The coverage provided by temporary health insurance is often more economical due to its limited coverage. If you require interim coverage for routine medical care, a short-term plan can be a wise choice. Before enrolling, be sure to check for any restrictions or exclusions to coverage.

Insurance Marketplace

People can shop for their own insurance through the Health Insurance Marketplace under the Affordable Care Act. They can use this tool to evaluate the costs of COBRA vs. individual and family insurance. Depending on which option suits them most, they can choose from a variety of plans.

Remember that you might qualify for premium tax credits, Children’s Health Insurance Program (CHIP) coverage, or free or affordable Medicaid through the government’s Marketplace depending on your income and the number of people who depend on you.

Private health insurance

In some cases, private health insurance may be more cost-effective when compared to COBRA. Numerous insurers offer specialized insurance that protects you and your loved ones. You might find that buying individual coverage gives you more options if you don’t qualify for COBRA or don’t want to keep the health insurance plan you had through your job.

If you are leaving your job, remember you have options for health insurance. One of the above-named options may work. If you have questions or still need assistance, feel free to give us a call at (303) 466-9575 and we will go over all your health insurance options. We are happy to help!