Of course you can afford any healthcare insurance when you have an awesome job, but what if you’ve suddenly tossed out of the line? Putting a breach to your health insurance because of unemployment, can put you to frightening medical bills in case of immediate needs. Do not risk your health. I will make you understand straightforwardly, the ways of how you can continually afford health insurance after you’ve lost your job.
A federal law called COBRA (Consolidated Omnibus Budget Reconciliation Act) which allows unemployed people to keep their health insurance. This act also provides 60-day time for you to revision, decide and to shop for a new healthcare plan.
In COBRA, you can keep the old health insurance plan as long as you pay for its cost, which is the entire premium rate and the 2% administrative fee. Within the stated 60-day duration, you can also opt to sign up for a new and cheaper individual plan.
Don’t get too excited on deciding on this. You must consider 3 significant factors before concluding to your final verdict:
- You must check on the changes of your COBRA healthcare rate. Through policies, rates rise and fall most of the time, this is why you need to check on this matter often.
- Also check if you are eligible for a tax credit. In simple words, tax credit, if you’re eligible, can deduct significant amount from your premium rate and by that condition, you can absolutely afford your old healthcare plan.
- Your age can be an important cause of subtracting an amount from your previous monthly premium rate. An employer-based healthcare program is a group plan and the rate will always depend from the average age of the group. If you’re paying only for yourself and considering that you’re younger, then, you might have lesser healthcare payment.
In preparation for health emergencies, it is very important to carefully choose a healthcare program that will suit every aspect in your life, including budget, type of living, and health, itself. Getting fired from work is as devastating as it is, but knowing exactly what to do can bring you to safety and can gain control in your life.