Re: Insurance- What to do about your healthcare after you lose your job
It is important at a time like this to be strategic and not only address the emotional issues you are facing but to also take care of the more practical matters at hand. This step is extremely time-sensitive and of all the areas where I counsel clients, this is where I save them the most money and heartache.
Everyone’s situation is different, and you must act according to your own. But one thing that all recently unemployed individuals have in common is just having experienced a life-altering event—a term often used in HR circles meaning that due to outside circumstances there are significant impacts on your social and economic wellbeing. Everything has changed and you need to adjust.
I am going to break this down very succinctly for you. But first, do not be intimidated. I know people who work in healthcare benefits who still have to look things up when it comes to knowing insurance and post separation healthcare. Few things are as intimidating as having to handle your own healthcare. It is complicated, expensive at a time when money is an issue, and there is a fatalistic sense to it because of the fear of making the wrong decisions (anyone who has picked the wrong healthcare plan at work can attest to that). This is one of those few areas in navigating your unemployment where you need to enlist the experts. But I am going to break things down on the surface to get you started.
If you are on your company’s insurance plan.
If you are lucky and have healthcare through your work and are on the plan, there might be some good news for you. You do not immediately lose your coverage. You are covered for at least the duration of the month in which you lost your job. You do not have to pay extra for this. Let’s say your job ended on the 3rd of the month. You would be covered throughout the rest of this month. What does that mean to you? It means that you should use every last bit of that insurance for you and your family until the last day of the month. This means scheduling doctors appointments that you have probably put off due to being busy at work. This means getting prescriptions filled and refilled while they are still covered on your plan. This means going to the eye doctor and the dentist. Stocking up on contact lenses, etc. You should do anything you can do now to save time, money, and your wellbeing. Knowing that immediate healthcare is taken care of while you are out of work can take an enormous burden off you and your family. Taking advantage of this “free month” could save you thousands of dollars.
A few tips: If you encounter difficulty scheduling to see a healthcare provider during this month simply tell the office staff that your insurance runs out at the end of the month. I have never had an office fail to find room in the schedule for me or one of my clients in this situation. It may be a little difficult to let a stranger know that you have lost your insurance, but these are trained professionals and now is not the time to be proud as you have less than thirty days for this benefit. If you have an FSA card through your employer, you may not be able to use the card once a new month starts. Check with the card vendor (the contact information should be on the back of the card) and use any funds available to you to cover your medical costs. In most cases, any remaining balance on your card, stays with your employer. If you don’t’ have any medical expenses for the month, find out any over the counter allowances through your card such as over the counter medications and stock up. You do not want to leave money on the table.
If your partner has a healthcare plan on their job.
Workplace healthcare plans allow you to make changes under three specific circumstances:
New Employees: Added within a certain date of hire, if they so choose. This varies from company to company.
Open Enrollment: Once a year on a given date, employees who wish to, re-enroll or enroll on the company’s plan(s) and select their benefits for the oncoming year.
Life Changing Events: Usually a life changing event is because of a change in your family situation: a birth, adoption, marriage, a death, or job loss. If you lose your healthcare plan due to job loss and your partner’s place of work provides healthcare, you can be added to their plan at that time. Most workplaces will require documentation such as a separation letter but it is important to know that you will not have to wait until the Open Enrollment to get on their plan.
Your other healthcare options.
COBRA (the Consolidated Omnibus Budget Reconciliation Act as it is far less known as) entitles workers the option of staying on their company healthcare plans should they lose their coverage. Employees or former employees usually pay the insurance premium themselves (and it can cost over 100% of the actual premium, but not by much). COBRA is a law, and it requires companies to offer this option to any employee losing their healthcare. You have a certain amount of time to take the plan and you need to do your research before choosing. COBRA plans are not run by your former workplace but rather through a third party vendor. This keeps everyone honest. You should direct all inquiries to that vendor, not your former place of work. However when you leave your company, they are required to provide you with COBRA information.
COBRA was created eons ago to assure that people who were out of work could afford healthcare. Now with the Affordable Healthcare Act, and multiple, less costly options open to people on the state-run healthcare exchanges, COBRA is not the only option. Most state-run exchanges have knowledgeable employees who will help you to choose a cost effective plan that works for your family and situation. Use the remainder of the month where you have your work insurance to look for an appropriate state provided plan for you and your family.
One more word about COBRA. During the pandemic, I have seen the trend where companies have been offering to cover the cost of COBRA for separated employees. If you take this option (and it’s a generous option) make sure you follow the instructions to the letter about enrolling yourself. You will still have to pay your co-pays and other healthcare costs, but if you are healthy or your costs are minor, let someone else pay the bill. It should also be noted that if you were lucky enough to have your workplace cover your COBRA the federal government passed legislation to extend that coverage through September at your former employer’s expense. Your plan may vary but you should still check. It is undecided of there will be a further extension of this continued COBRA coverage past the last day in September and my advice is to prepare as if your coverage is ending but use this benefit while you can. Now is an excellent time to start researching the current exchanges.
If you have no other option.
Visit the website or office of your state’s healthcare exchange programs. The exchange programs offer plans that include vision and dental insurance through nationally known insurance providers. The exchanges can be very intimidating but there are employees there to help you. Most states have automated sites to help you pick the right plan for you and your family- you answer a series of questions about your medical needs and income and the automated system will give you a variety of plan options. Keep in mind we are past the days (thank goodness) of pre-existing conditions. The way to get the best plan for you is to understand and know your healthcare needs and those of your family. Bring the information to your exchange appointment or have it ready when you go to the website. You have confidentiality with the sites and this is a free service to you.
Take care of yourself and your family’s healthcare now so that when you do go back to work, you can focus on your new job.
