Life hardly ever goes according to plan. while it would be nice if we were all able to take the easy way out and get the best results, that’s usually not the case.
A particularly frustrating area of life is health insurance. Health insurance is important because an unexpected health emergency could easily bankrupt someone without health insurance. at the same time, sometimes it’s hard to stay covered.
Reading: How long can you go without health insurance between jobs
For example, let’s say you’re changing jobs. you had health insurance at your old job. You will also have health insurance at your new job. But maybe you’re taking a three-month break between jobs, or the new job has a waiting period before you can start using benefits, including health insurance.
What can you do to fill a gap in your health insurance? Fortunately, you have a few options.
Step 1: Find out when your coverage really ends
The first thing you should do is find out when your current health insurance coverage ends. Depending on how you get your insurance, your coverage may not end when you think it will.
If you currently have a plan outside of your job, your plan will likely end at the end of the month you last paid. this makes sense and is quite easy to control. just pay for the plan until you no longer need it.
However, if you lose coverage from a job, your health insurance end date may change.
Personally, I thought I would lose my health insurance the day I left my job. instead, my insurance was extended through the end of the month I left, regardless of what day of the month I quit.
Check with your human resources or benefits department to see how your employer’s health insurance works. If that doesn’t work, try calling your health insurance company directly.
Step 2: Know how long you’ll need coverage
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After you find out when your current health insurance ends, you can estimate how long you’ll need coverage to fill your health insurance gap.
If you know when you’ll have health insurance again, it’s easy. simply calculate the time between when your current insurance ends and your new insurance begins to determine how long your gap coverage should last.
Unfortunately, if you have no idea when you’ll get health insurance again, you’ll have to guess or find a way to get permanent health insurance coverage. Some people may only need insurance for a few days between jobs. others may need insurance for a few months until the benefit waiting period ends with their new employer.
step 3: consider all your options
As with most important decisions, it makes sense to compare all possible options before making a decision.
Each type of insurance listed below can vary greatly in price based on a person’s individual situation. Coverage levels can also vary greatly depending on the plan you choose. Make sure you fully understand the health insurance plans you’re considering before making a decision.
medical insurance charges
cobra stands for Consolidated Omnibus Budget Reconciliation Act. While that may not sound very helpful, cobra health insurance can be a great tool if you have a health insurance gap.
Basically, Cobra health insurance allows you to continue using your employer’s health insurance for a certain period of time after you no longer qualify.
situations that allow you to qualify for cobra health insurance
- leave your job
- get fired
- reduce your hours and lose benefits
- get a divorce
- employee dies
- a child loses dependent status
If you’re eligible for cobra health insurance, you should get a letter from your health insurance provider or employer explaining the benefits, how they work, and how to sign up. Unfortunately, not all employers are required to offer cobra coverage.
In general, businesses must offer cobra if they have 20 or more employees and are in the private sector or are state or local governments. Some states may have passed laws that make these requirements even more stringent, but there are still many exceptions.
the cost can be very high
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What may surprise you about cobra coverage is the price. When you’re employed, your employer is likely to pay a significant portion of your health insurance premiums.
once you no longer qualify for health insurance through your employer, you will have to pay your normal premium plus what the company was paying for your health insurance.
Since most companies heavily subsidize health insurance premiums, the price of health insurance you charge is likely to be much higher than you think.
If your donut hole is fairly short, you may be able to take advantage of cobra coverage for free, but only if you don’t use it. This way, you can be covered in the event of an expensive medical emergency, but you don’t have to pay anything if you don’t use any medical services during the coverage gap.
short-term health insurance plans
Short-term health insurance plans are another option to fill a gap in health insurance. These plans are often cheaper, but they don’t cover everything that a traditional health insurance plan would.
what is not covered?
- pre-existing conditions
- maternity care
- preventive care
- prescriptions
If you’re considering one of these plans, it’s very important to understand exactly what is and isn’t covered so you’re not surprised by unexpected medical bills.
register and cancel whenever you want
however, you can subscribe to these plans at any time and cancel at any time without penalty.
In some cases, you may be able to get coverage the day after your application is received. Please note that these plans do not count as minimum essential coverage under the Affordable Care Act.
major medical insurance through open enrollment or qualifying events
An option many people don’t think about for short-term gaps is major health insurance through open enrollment or a qualifying event. If your gap falls on the first of the year, you may be able to get traditional health insurance through open enrollment.
however, it is unlikely that your timing will line up perfectly. for him
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