It’s a question on many people’s minds: what happens if I lose my job? It can affect many factors including income and health insurance. Here’s what you need to know.
When does coverage end?If you lose your job, you should check with your employer’s benefits department. In many cases, coverage may last until the end of the month that your termination became effective. Just because your employer coverage ends, doesn’t mean you are out of options, though. COBRA, or Consolidated Omnibus Budget Reconciliation Act allows employees of companies that meet certain requirements keep their coverage after termination for up to 18 months.
What is COBRA and how does it work?COBRA allows employees who are terminated from certain companies keep their health coverage. If using COBRA, you may be responsbile for a portion or all of your healthcare premiums, but it allows you to have the option to extend your coverage for up to 18 months.
Other OptionsIf you need to enroll in a new health plan, there are several other options available to you:
- Medicaid – For those who qualify
- ACA – If you don’t qualify for Medicaid, you may qualify for a plan under the Affordable Care Act