Saving Money
Cut Healthcare Costs: Part II
- Leave your job
- Your hours are reduced (making you ineligible for employer-paid insurance)
- You're terminated other than for gross misconduct
- You get divorced and lose coverage under your spouse's plan
You can likely elect to continue your
insurance coverage under COBRA if the above situations apply to you.You'll have
to pay the full amount of the premium plus an administrative fee of 2%.Without your
employer kicking in, that can be expensive! But you may want to hang onto it while
you find other coverage.
You generally have up to 60 days after losing your
employer coverage to elect to be covered under COBRA, and coverage is then retroactive.
But don't wait that long to either sign up or find other coverage. Remember, if
you go 63 days without coverage, you lose important rights under HIPAA. Get information
about COBRA as soon as you leave your job so you can make an informed decision.
If needed, you can elect to keep coverage only for
your spouse and other dependents who were covered under your employer-sponsored
plan. Let's say, for example, your husband has a health problem but you and your
child are healthy.The two of you may look for a cheaper individual plan while electing
to continue COBRA coverage for your husband who would have a hard time finding health insurance.
Get detailed information about COBRA coverage at
insure.com.
Try the Blues:
Blue Cross/Blue Shield members are large insurance companies, and may offer programs
for consumers who can't get insurance elsewhere. Visit their main website www.bluecares.com
for information on a Blue Cross/Blue Shield program in your
area.
Insure for the Worst:
Major medical or "catastrophic" insurance features high deductibles and covers expenses
like a stay in the hospital, surgery, intensive care, diagnostic X-ray, and lab
tests. If you can't afford the kind of coverage you'd like, it may make sense to
consider insuring for the worst - a serious illness or accident. Major medical policies
often offer high deductibles of $500 to $2000 or more.That means the plan pays no
benefits until you've reached the deductible amount. Still, it could be a lifesaver;
helping your family get the medical care it needs if the worst should happen.
Ask Your State for Help:
Some 29 states fund "risk pools," or high-risk health insurance plans.These plans
are generally available for consumers who cannot obtain health insurance because
of pre-existing medical conditions.To see whether a risk pool is available in your
state, contact your state insurance department.
Join the Club:
Check with trade or professional associations, alumni associations, or local Chambers
of Commerce, all of which may offer health insurance programs for their members.
But just because an association endorses a program, doesn't mean it's good. Some
large associations have been duped by fraudulent health care programs.
