Insurance Options When You Don't Have Coverage

Outrageous health care costs and the lack of health care coverage for many people has become a national crisis.  Without insurance coverage, unexpected medical expenses can create a financial catastrophe for a family from which it is difficult to recover.  In fact, up to half of the bankruptcy claims filed by taxpayers in the U.S. list expensive medical bills as a contributing factor.  No matter if you are employed, self-employed or unemployed, there are insurance options you should know are available. 

It used to be that most everyone who had a steady job was given health coverage by his or her employer.  Rising costs of health coverage, however, has made this benefit impossible for some employers to offer.  It is common for companies to increase worker contributions towards premiums.  Even so, these are less expensive than individual plans. 

Naturally, the self-employed and unemployed face even more difficulties in acquiring health care.  State-run or individual plans are typically more costly and offer less coverage.  While there is no ideal for everyone, a little research will identify which best suites your needs and your wallet.

Individual Coverage
Many insurance companies recognize the gap in coverage and offer plans for individual purchase.  Since this is not a bulk purchase, it is more costly than a plan provided through an employer.  Plans offering the lowest premiums tend to carry the highest deductibles and co-payments.  Often coverage may not include maternity, prescription, or mental health costs.

Short-term Coverage
Short-term plans may be a better option if you need coverage on a temporary basis.  Not all plans are alike.  Once again, the trick is to weigh the coverage and costs against your needs and budget:

• COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985). Federal law allows employees to retain insurance coverage for 18 months after a job loss, and sometimes up to 36 months.  The individual is responsible for the full cost of premiums plus any administrative fees.  If serious or chronic illnesses are an issue, COBRA coverage may be the best bet in terms of scope of coverage compared with an individual plan.  Widows, divorced partners and students are eligible for coverage.
• Short-term private plan. These plans are designed to provide interim coverage for healthy individuals.  The premiums are significantly less than COBRA plans, but eligibility is restricted.
• State high-risk plans. Some 30 states offer plans designed for those unable to qualify for coverage elsewhere.  Be aware that some states have waiting lists.  Eligibility for Medicare or Medicaid rules out enrollment in these plans.  Because eligibility is relatively open, premiums tend to be higher.

The protection of health insurance is something none of us can afford to be without.  An unexpected illness or hospitalization is too costly to face without protection.  Fortunately, the growing number of options makes finding an affordable plan possible.