If you find yourself in the unemployment pool and without any health insurance, there is some good news for you. It is not impossible to have health insurance—even when you have no income.
Whether you have just been laid off from your previous job, are struggling to provide insurance for your children, or are searching the job market for your next career, you need to know what your best options are to receive the coverage you need and how to compare multiple plans to pick the best option for those needs.
Know what options are available
Many health insurance plans are available to households with low to no income or contain many dependents. Other plans vary based on the age of the applicant.
Whatever your situation is, there is a plan for you. You can look onto different government websites and the Marketplace to see what you qualify for.
There are different routes you can take to get covered. Here are a few of them to consider that help people in a variety of situations.
COBRA
The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to remain in your health insurance plan that your previous employer covered but requires you to pay the full amount out of pocket. COBRA can be a good option if you’ve just been laid off or have lost your health benefits.
If you’re looking for a short-term option to continue to be fully covered, then COBRA can help you keep your plan, but it can be costly. Your employer must notify you that you have 60 days to enroll in a program like COBRA.
How you qualify:
- Spouses/former spouses of the previously covered employee
- Children of the previously covered employee
- Must have been enrolled in employer’s plan when employed
Health Insurance Marketplace
One way to get health insurance is by shopping for it on the Marketplace. You can go to Healthcare.gov where it is available (although some states provide their own marketplaces) and shop or enroll in plans.
It is easy to find your state’s marketplace website. Once you browse by your state, you can easily purchase a plan and enroll in affordable health coverage that is right for your needs.
Keep in mind that if you lose your job, and therefore, your coverage, you are eligible for a special enrollment period, in which you have 60 days from the time you lose the job to enroll in a plan at any time of the year. You can learn more about enrolling in a SEP here.
Short Term Health Insurance Plans
If you do not qualify for COBRA, but still need health coverage for a short amount of time, until you find employment, then opting in a short-term health plan may be the perfect path for you.
An analysis by the Kaiser Family Foundation (KFF) found that most short-term insurance plans do not cover certain things like maternity care, mental health, and outpatient prescription drugs. So, this route may be best for relatively healthy individuals.
Short-term plans can provide you with some coverage while you wait for employment opportunities or for another enrollment period.
Why you may consider enrolling:
- If you’ve changed jobs recently
- Are waiting for another open enrollment period
- Don’t want or can’t get medical coverage from major insurance providers
- Lose employee coverage
- Are a college student (attending out-of-state)
- If you do not have pre-existing medical conditions
Medicaid
According to last May’s enrollment period report, Medicaid enrolled over 75.9 million Americans in insurance plans. You can be the next!
Medicaid is a federal and state welfare program that offers health coverage to qualified individuals, helping them to receive the medical benefits they need.
Who qualifies automatically:
- Low-income families
- Qualified pregnant women or children
- People receiving Supplemental Security Income (SSI)
Who else may be eligible:
- Residents of the state where you are receiving Medicaid
- U.S. citizens or qualified non-citizens
CHIP
If you have children and your income is too high to qualify for Medicaid but too low for private insurers, you can make sure they are covered as well since Medicaid partners with the Children’s Health Insurance Program (CHIP).
Who may qualify:
- Women who are pregnant
- People with disabilities or high medical costs
- Individuals/families with low incomes
- Teens living on their own
Choose the right insurance provider and plan
Once you know that you have options for being covered, you’ll need to know what to look for when comparing plans and making the final decision to buy one.
Know which plan you’re signing up for
There are four main types of insurance plans and knowing the difference between them can help you determine which is the best fit for your situation.
- Exclusive Provider Organization (EPO) – Except for emergencies, health services are only covered if you use doctors, specialists, or hospitals.
- Health Maintenance Organization (HMO) – this plan primarily depends on staying in-network to receive care (unless it’s an emergency) and focuses on prevention and maintaining wellness.
- Point of Service (POS) – If you see a doctor or specialist that works with a POS provider, you can pay less when you get a referral from your primary doctor to visit them.
- Preferred Provider Organization (PPO) – You would pay less money if you used a doctor, specialist, or hospital that works within the plan’s network.
Compare the benefits
You’ll want to look at the summary of benefits provided by the insurance plan. The more benefits provided, the better the plan may be for you.
The types of benefits offered may not provide any value to you, so you will want to look deeply at your situation and ask yourself what types of treatments and doctor visits you might have in the future, or proneness to sickness you have.
Compare costs
You will want to check the overall premium price of what your monthly cost will be, but you’ll want to check out the out-of-pocket costs as well. Just because one is cheaper than the other, doesn’t make it any better.
The best way to look at these is the federal marketplace, which gives you a look at what the out-of-pocket costs would be and how much you’d have to pay for services.
Again, you would need to determine how often to you visit a medical professional, if you are on frequent medications, have a chronic illness, or are prone to sickness.
Your next steps
Although many factors go into determining your eligibility for low-cost or free coverage plans, you can do a bit of research and planning to figure out which insurance route is the best option for your needs.
Once you’ve determined your eligibility for certain programs and have settled on the best option for yourself or your family, you can apply for your desired plan. Learn how to apply for these insurance plans for the year 2022 here.
If you are thinking that not having health insurance is the best route, you may be taking a riskier gamble, especially since there are many affordable insurance plans out there that will keep you covered.