When you are looking for work, there are a number of important things to think about that can help you find your next job. What opportunities are the best fit for your abilities and experience? How can you stay connected to your important references? Are you able to improve the job skills that you have, or develop new ones?
When you are so focused on finding your next job, you might neglect something that is always important: your health. And if you've lost your job, you might not have access to the benefits you used to have with your employer, including health insurance. Unfortunately, this is a problem that more individuals are facing with the rising unemployment rate, which reached 9.8 percent in September 2009.
In order to help protect your personal and family health and financial security, it's essential to find health care coverage during this time. There are a couple of important options you can consider in this situation, as well as some general tips that can help guide whatever decision you make.
Individual Health Insurance Plans
Because most people receive health insurance through their jobs, they are not familiar with individual insurance plans. A 2009 Aetna survey of recently unemployed professionals conducted by Linescale Research found that, 69 percent of people had never heard of individual health insurance plans or did not know much about them.
These plans come in all shapes and sizes. You can purchase comprehensive coverage for you and your family that may look very similar to what was offered through your previous employer, or choose a lower level of coverage for a more affordable price. In terms of cost, what you pay is based on the type of plan you want, your age, where you live and your health. Some plans for children and young adults can start with a premium as low as $40 a month and there are quite a few that can be found with premiums for under $100 a month. Individual health insurance plans may be subject to medical underwriting and other restrictions.
Almost all insurers have Web sites. For example, Aetna has a Web site (http://www.aetna.com/members/individuals/health/aetnahealthnow/select.html) where you can research plans using an interactive advisor named David, get quotes and even apply online.
In addition, there are also Web sites like eHealthInsurance.com that let you compare plans where you live. You can also contact a local broker who can help answer any questions you might have when comparing plans.
COBRA
Depending on your employer, you may be eligible to continue receiving health insurance through your employer through something called COBRA coverage. This can cover you for up to 18 months after losing a job.
While the Aetna survey found that more people were aware of this option than they were of individual coverage availability, there was a lot of confusion over the cost. The typical cost of COBRA coverage can be as much as 102 percent of the total premium, which is the actual cost of the plan and not just the amount an employee contributes to the premium. Without an employer contributing a portion of the premium payments, paying double or more is not unheard of for an individual to keep the same health insurance coverage.
As part of the national economic stimulus package, people who were involuntarily terminated (or may lose their jobs) between September 1, 2008 and December 31, 2009 and who elect COBRA coverage may be eligible to receive a 65 percent subsidy of the total COBRA premium for up to nine months.
These changes are a positive temporary solution and will make COBRA coverage more affordable for eligible consumers. Even with this subsidy, however, consumers may still be able to find individual health insurance plans that are less expensive and fit their budgets better.
You can visit the U.S. Department of Labor Web site at www.dol.gov to learn more about these changes.
Questions to Consider
While individual health insurance plans and COBRA are two important options to think about, every person has a distinct situation. When making this decision, there are three questions that anyone can use to figure out the most appropriate health plan for his or her unique needs.
1. How long do you expect to go without insurance? Not having insurance for a few months is very different from not having it for a few years.
2. How much coverage do you need? A young man looking for his first job and a mother of two who owns her own business will make very different choices.
3. How much do you want to pay? A lower premium (the amount you pay each month) might seem to be the best way to save a few bucks. Just be sure to find out how much more you will have to pay if something happens to you.
Just like when you are searching for a job, knowing the different options that are out there and the right questions to ask is a key to finding the best health insurance option.
By Frank McCauley head of Aetna's Consumer Business Segment, which offers health insurance products directly to individuals and their families.