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Why Buy Health
Insurance?
If you're
healthy, you probably don't think about health insurance -
until you get sick or injured. Then, health insurance can
become the most important thing in your life and the lives of
your loved ones. If you've ever experienced an unexpected
health crisis and been without health insurance, you know what
a financial and emotional disaster it can be.
Most people who are full-time
employees of large companies receive health insurance as part
of their employee benefit package. But if you work part-time,
work in a small office, are self-employed or unemployed, you
may be among the more than 44 million people in this country
who aren't covered.
Health insurance is too
important a purchasing decision to take lightly. An uninformed
choice today could leave you without the coverage you might
need later. Whether you're shopping for an individual health
plan for you or your family–or comparing the plans offered by
your employer–shop wisely. You want to make sure that
the plan you select meets your unique healthcare needs and
also fits your wallet.
Carefully identifying your
current and anticipated preferences and needs can help you
select a plan that meets your personal requirements for now
and in the future. Although most plans cover outpatient and
hospital care, and a number of other services, some coverages–like dental
care and vision care are not usually
included in a general plan.
What happens to my
group health coverage when I quit or loose my job?
Post Employment Coverage
When you leave your job, you
also leave behind your employer-based health insurance. Unless
you're moving into a job situation where you're covered
immediately by your new employer or you can join your spouse's
plan, you'll need to obtain coverage on your own.
Your options
for personal coverage include short-term medical,
individual
medical plans, and COBRA coverage.
Short Term
Medical:
Short-term medical plans are designed for people who are
responsible for their own health insurance until they secure
permanent individual insurance or employer-based coverage.
Premiums for these plans tend to be lower than COBRA or
individual major medical plans, mainly because they do not
cover preexisting
conditions.
Short-term medical plans can usually be purchased for
coverage periods of one to six months. Some companies allow
you to reapply for one additional period of the same length as
the initial period. Short-term medical plans generally do not
provide coverage for any preexisting condition, and any
condition that may have developed during the first coverage
period may be excluded from your second coverage period.
Short-term medical plans may also be an option to meet the
needs of graduating students, who may be responsible for their
own health insurance until they secure employer-based coverage
or permanent individual insurance.
COBRA:
If you
quit your job or are let go for any reason other than gross
misconduct, you may qualify for continuation of your
employer's health insurance benefits under the federal law
known as COBRA (Consolidated Omnibus Budget Reconciliation Act
of 1985). You may also qualify for COBRA if you lose your
employer-based health insurance coverage because your work
hours are reduced. If you lose coverage for one of these
reasons, you, your spouse, and children may continue your
previous health insurance coverage under COBRA for up to 18
months by paying the full premium plus an administrative fee
(up to 2 percent). If you are disabled, the COBRA coverage
could be extended to 29 months. Spouse and dependent coverage
is available for up to 36 months for reasons of your death,
divorce, separation, or when your child reaches the plan's age
limit. For a healthy person, the premium for COBRA
continuation coverage may exceed the premiums charged for
short-term medical and individual plans that you can purchase.
You should compare COBRA costs and coverage with other options
before purchasing.
HIPAA:
Another piece of federal legislation known
as HIPAA (Health Insurance Portability and Accountability Act
of 1996) may become very important to you if you terminate
your current employment. HIPAA guarantees that you can obtain
group health insurance if you have had continuous coverage for
the previous 18 consecutive months. Time covered on a COBRA
plan counts toward the 18 consecutive months. HIPAA also
guarantees certain eligible persons the ability to purchase an
individual health policy. This guarantee is more limited, and
the types of available plans vary considerably by state. Visit
http://www.hhs.gov/ocr/hipaa/ for more info.
Individual Plan: If
you can't find group coverage or you're not eligible for COBRA
(or have exhausted your COBRA benefits), you definitely need
to go shopping for an individual plan.
Being
without health insurance puts you and your family at risk!
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Health
& Dental
