Does My Health Insurance End the Day I Get Fired? Here’s What You Should Know
Losing a job can be a challenging time, and the last thing you want to worry about is losing your health insurance coverage. Thankfully, there are laws in place to prevent this from happening entirely. In this article, we will explore what happens to your health insurance when you get fired and provide you with the information you need to make informed decisions.
Understanding COBRA
The Consolidated Omnibus Budget Reconciliation Act or COBRA was enacted in 1986, and it ensures that individuals who are terminated from their employer-sponsored group health plan for reasons other than gross misconduct can temporarily continue their existing coverage.
What Does COBRA Cover?
COBRA coverage allows you to keep the same level of health insurance benefits that you had as an employee, however, you may be required to pay a higher premium. For example, under COBRA, you will pay your share of the premium plus the cost that your employer used to pay towards your insurance premiums. Typically, this can be double or more the amount you were paying while employed.
How Long Can I Keep COBRA Coverage?
COBRA continuation coverage typically lasts for 18 months from your last day of employment. However, certain circumstances may extend your coverage up to 36 months. For example, if you become eligible for Social Security Disability during your COBRA coverage, you can extend your COBRA coverage by a total of 29 months.
What Happens After COBRA Coverage Ends?
After your COBRA coverage has ended, you may be eligible for other health insurance options. You can enroll in a Marketplace Plan during the annual open enrollment period or if you have a qualifying life event such as marriage, divorce, or the birth of a child. You may also be eligible for Medicaid or CHIP, depending on your income and family size.
Conclusion
Getting fired can be a stressful time, but knowing your health insurance options can help ease some of the stress. With COBRA continuation coverage, you can keep your existing health insurance for a temporary period after job loss. Although COBRA premiums can be expensive, it’s important to have insurance coverage to protect you and your family’s health. If your COBRA coverage expires, you can enroll in a Marketplace Plan or other government-sponsored plans. Remember, it’s critical to have health insurance that meets your needs to ensure you stay protected during uncertain times.
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