What To Do If You Recently Lost Your Health Insurance Coverage

What To Do If You Recently Lost Your Health Insurance Coverage

Jul 20, 2021

According to a recent Harvard Medical School research done during COVID-19, as many as 17 million individuals lost their jobs in 2020. In March 2020, 1.5 million people in the United States lacked health insurance


Many individuals are losing jobs or being laid off, so most insurance coverages are also disappearing. If you find yourself in this situation, you can acquire health insurance for yourself and your family by doing one of the following.


Steps to Take Immediately After Losing Your Health Insurance

Here are some immediate steps to take after losing your insurance:


1. Check in with Your Former Employer

Though health insurance policies are changing rapidly, some companies still cover health insurance for furloughed employees. The CARES Act has several provisions to reward employers to maintain their workforce. It's essential to know about your company's plans and stay in touch with your employers to get documents to verify the loss of health insurance.


2. Get Proof of Loss of Coverage

Securing all the documents you'll need when applying for insurance, including proof of job and health insurance loss. Ensure you obtain a "Letter of Coverage" from your insurer that states the period the insurer has covered you to prove that you have had constant coverage when you shift to another insurer.


Suppose you've been paying your insurance under the Affordable Care Act (ACA) and are experiencing a loss of income. In that case, you can revise your estimated annual payment and get a subsidy and lower premiums.


3. Pay Attention to Important Deadlines

There are some pretty critical deadlines ranging from 30-60 days from the loss of coverage that you must be aware of. There could also be financial penalties if you don't sign up for health insurance options during those deadlines:

  1. 60-day sign-up for COBRA.
  2. 30 days will be added to a parent's or spouse's health insurance.
  3. 60 days for the particular enrollment duration at HealthCare.gov.


Solutions for Regain Health Insurance Coverage

Here are some solutions advised by experts to secure your recently lost job-based insurance:


Get coverage through your spouse or domestic partner.

Some insurance companies offer Domestic Partner Health insurance, allowing you to avail yourself of the same benefits your partner would get. If your spouse or domestic partner has health insurance coverage through their employer, you can elect to go on that. In most cases, couples would need traits like marriage, such as a shared home, sharing living costs, or joined bank accounts or credit cards to meet the criteria for domestic partnership.


Ask to join family coverage.

If you are 26 or younger, you could also go on with your parent's insurance plan. You can join it within 30 days after losing your health insurance coverage. Joining a family member's policy often involves additional premium costs, but still, it is one of the most cost-effective options for replacement coverage for you.


Check COBRA eligibility

Determine whether you're eligible for COBRA, a law that requires employers to extend health insurance coverage to employees and their families for up to 18 months after they have left. Employers with 20 or more full-time employees offer COBRA to former employees and their spouses and children.


The way it would work is you'll have an initial 18-month period, and at a later date, if you want to proceed with the plan, you can extend it for around 36 months. However, COBRA is probably your most expensive option because, until now, your employer has been absorbing most of your monthly premium while you likely had a share in it.


When you continue with that insurance through COBRA, your employer may or may not continue to subsidize that cost, and your monthly premium may quadruple.


Check if you qualify for Medicaid.

You can find out if you are eligible for Medicaid by contacting your state's Department of Health Services or going to their website to apply. Medicaid provides free health insurance to the individual or family who qualifies. Qualification is based on household income, and federal and state governments regulate it.


Unlike the ACA exchange, Medicaid eligibility is determined by monthly payment. If your monthly income decreases significantly, you can apply for it. There is a minimum income requirement for low-income persons to qualify for Medicaid health insurance coverage.


Get benefits from the ACA (Affordable Care Act)

If you've recently lost your job and are looking for new health insurance, contact Healthcare.gov or MYMESÍ health experts about ACA exchange plans. One of the qualifying events is losing your sponsored insurance, and you should enroll within 60 days of losing your employment.


Also, people who have lost their jobs may qualify for government-sponsored insurance or cost-sharing programs offered to exchange plan members. Also, if you or a family member has a preexisting medical condition, the Affordable Care Act specifies that your insurer cannot deny you coverage.


Enroll in Medicare Part B

There's still time if you're 65 or older and haven't yet signed up for Medicare Part B. If your employer's plan still covers you, you don't have to give up your coverage. You may be eligible for a particular enrollment period if you lose coverage.


Conclusion

You don't have to give up your health insurance because you've lost your employment. The tips above will assist you in obtaining current healthcare coverage. If you have any questions, feel free to contact us. We have health insurance experts ready to help you navigate this stressful period easily.