If you've lost your job
Losing your job often means losing your health insurance, too. Fortunately, many people are able to continue coverage under federal law. The Affordable Care Act adds to those rights and protections, but the most significant additions won't take effect until 2014.
Here are some coverage options for health insurance if you're unemployed:
Join your spouse's or domestic partner's plan
This will almost certainly be the most affordable option. Generally, you can switch to a plan that your spouse or domestic partner has without waiting for the next open-enrollment period. If your whole family was covered under your plan and your spouse previously declined coverage under his or her plan, the entire family can immediately switch as well. The federal Health Insurance Portability and Accountability Act (HIPAA) gives you this right, called a special enrollment opportunity. But you have to make your move within 30 days of losing your previous coverage.
Sign up for COBRA
If you were terminated by a company with 20 or more full-time employees and had health insurance there, COBRA gives you and your dependents the right to stay on the company's health plan for 18 months (36 months for people with disabilities) after being let go.
Your employer is required to mail you a notice about COBRA when you leave your job. It has to include how much you'll have to pay for the coverage. You have to sign up for COBRA within two months of losing your health insurance.
Many states plus the District of Columbia have "mini-COBRA" laws that extend COBRA rights to people who work at companies with fewer than 20 employees.
But under federal COBRA and state mini-COBRA, you'll have to pay the entire premium yourself. That includes the portion your former employer used to pay—usually around 70 to 75 percent. A 2 percent administrative fee is also tacked on.
If you can afford it, we recommend taking COBRA because it will probably offer more comprehensive coverage than an individual plan. And if you have a pre-existing condition, you might not be able to find an affordable individual health insurance plan that will accept you.
Some COBRA exceptions: If your former employer goes out of business or drops its entire group health plan, there's no COBRA. This is true even if you have already been on COBRA for a while. Also, if you were fired for gross misconduct, you're not eligible.
Consider individual insurance
If you're unemployed and in good health, you might be able to find an individual health insurance policy that's more affordable than the employer coverage options above, although the coverage might not be as good. Check out your options at Healthcare.gov.
Look into conversion and HIPAA coverage
If you can't get individual insurance because of a pre-existing condition but are coming off an employee group plan, you have some options you wouldn't have otherwise. In most states, if you're not eligible for COBRA or mini-COBRA, the law requires your employer's insurer to convert your coverage to an individual plan. And in every state, the HIPAA law guarantees you the right to purchase an individual plan. States vary in how they handle this, but in most cases insurers can charge whatever they want—usually a lot. Your state insurance department can provide you with details on both these options.
Investigate Medicaid or CHIP
If your family income takes a big enough hit from your job loss, you or your children might be eligible for Medicaid or the Children's Health Insurance Program (CHIP). Eligibility rules vary widely from state to state. You can find out if you qualify at Healthcare.gov or via your state Medicaid office.
If you're eligible for COBRA and your children for CHIP, you might be able to save money by putting the children on CHIP and you and your spouse on COBRA.
Take advantage of being a veteran
Unemployed veterans might qualify for free or reduced-price treatment at Veterans Affairs (VA) hospitals and clinics. The VA doesn't have enough funding to cover all veterans, though, so it has a priority list, with those who have been injured or disabled in combat at the top. Financial need is also taken into consideration. Check with your nearest VA facility to see if you qualify.
Join your parents' plan
If you lose a job and are under 26, you might be able to enroll in your parents' insurance plan.
High-risk pool
If you have a pre-existing medical condition and remain uninsured for six months, you might qualify for one of the new federally subsidized pre-existing condition insurance plans. If you don't want to wait six months or if you don't live in one of the 35 states that offer one, you can join high-risk pools that existed before the health-reform law.
