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Available Insurance Policies for Non-working Individuals

November 16, 2022 by Susan Paige

 

More than 160 million people in the United States had access to healthcare coverage through their employers in 2018. With unemployment claims topping 40 million in recent months, that once-popular route to coverage has quickly reduced.

If you lose your work and your health insurance benefits, you may find yourself under a lot of financial strain. Fortunately, those already unemployed but still need medical coverage during their job search might choose from several different solutions. 

If you’ve recently lost your work and are concerned about how you’ll pay for medical care, read on to learn about your alternatives.

How can the unemployed get health insurance?

You can still have health coverage even if you are unemployed. You can choose between private health insurance and insurance provided by the government. To know more, here’s a list of low income medical insurance to consider.

COBRA

COBRA is an abbreviation for the Consolidated Omnibus Budget Reconciliation Act. It was established in 1985, and it allows people to continue their employer-provided health insurance despite life transitions such as a change in employment or the loss of employment of a spouse or parent. It may be worthwhile to pay for COBRA if you have expensive healthcare needs and existing relationships with hospitals and physicians that you want to maintain.

The advantage of COBRA is that it allows you to keep using the same healthcare providers and facilities you did when you were working. The catch is that you might have to pay up to 102% of the plan’s premium.

Medicaid

Medicaid is a federal program that is managed at the state level. Medicaid might be a good option for those who meet the state’s eligibility requirements, usually based on a very low income. 

For example, if you’ve recently lost your work and are now receiving no pay, your income may be low enough to warrant assessment. Medicaid is a comprehensive program that can protect you financially until you can establish a more stable revenue stream. 

Create an account with Heatlhcare.gov or contact the Medicaid office in your state to begin the application process.

Medicare

For people 65 and up, the federal government offers the Medicare health insurance program. Apply for Medicare Parts A and B if you are unemployed and 65 or older. Medicare has some coverage limitations, but those gaps can be filled with supplemental health insurance plans.

Short-Term Health Insurance

One of the primary purposes of short-term health insurance policies is to provide financial protection in case of a medical emergency or unexpected illnesses. You shouldn’t count on them as a replacement for your regular health insurance. 

The Affordable Care Act (ACA) does not recognize short-term or temporary health insurance policies. Therefore, pre-existing conditions will not be covered, and other essential benefits will not be included in short-term health insurance. 

Moreover, not everyone is eligible for temporary health insurance. This implies that you’ll have to answer questions about your medical history and may be denied coverage based on the information you provide.

CHIP

The federal government’s Children’s Health Insurance Program (CHIP) is designed to help families with an overqualified income for Medicaid but not enough to purchase private health insurance. 

In addition, CHIP is managed at the state level. Thus its cost and scope of coverage vary widely. However, every state provides various pediatric health care, whether routine checkups, vaccines, dental or vision services, or emergency care.

Joining a Family Plan

If you don’t qualify for Medicaid and your family member’s plan is less expensive than the Marketplace plans, joining the family plan may be an alternative.

A family member can add their spouse and kids under 26 to their current policy. A spouse might be added up to 60 days after the wedding if they are claimed as a dependent on your taxes. Individuals who depend financially on the policyholder, such as family members, may also be added.

Catastrophic Insurance Plans

Catastrophic health plans pay for hospitalization and other medical expenses incurred due to a major sickness or accident. Still, they don’t give coverage for preventative care or more than three primary care visits per year. 

The plan may cover regular medical care once you meet your deductible. Catastrophic insurance policies are known for their hefty deductibles, but this may work to your advantage if you’re solely looking for protection against a catastrophic medical emergency.

How can I get healthcare without insurance or money?

If you can’t afford health insurance and don’t qualify for government programs like Medicaid or CHIP, a community health center may be able to help. Health services at health centers are provided on a sliding rate, so patients pay only what they can reasonably afford.

Final Thoughts

Health insurance can be expensive, especially if your employer doesn’t pay for any of it. However, as mentioned in this article, you still have options that suit your requirements and budget as an unemployed individual. You’re free to look into your alternatives and settle on the one that best meets your needs.

 

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