Know Your Health Insurance Rights During A Lay-off

Providing health coverage for laid-off workers is good health policy for all employers. This can take away some of the sting from being out of work and COBRA payments. Tax credits for laid-off workers are also available and can be a valuable element of a phased-in national strategy to assist the uninsured. Laid-off workers can receive effective, temporary "bridge" coverage between jobs using the COBRA law. These benefits will be the same as with their employer but at a higher cost. There are advantages in targeting this on this group for helping. Providing health insurance to persons becoming unemployed will help keep these people on the map so to speak. One of the biggest problems with American health insurance after unemployment is the disappearance of it. Most uninsured Americans had health coverage at some recent point but then lost it, typically because of unemployment, or some other reasons, such as aging out of a parent's policy or wage in-creases that exceed public program limits.

Targeting these people for aid or assistance in lower premium insurance will help reduce the number of uninsured. And as suggested by many American public opinion polls, there is more than 90 percent public support for helping laid-off workers. This addresses an important worry in the 165 million Americans under age 65 who have employer-based insurance. They too are afraid that a pink slip could end their health insurance. Helping laid-off workers obtain health coverage, regard-Less of the cause of their unemployment, would also remedy an inequity created by the Trade Act. It is hard to justify covering unemployed workers whose lay-offs result from foreign competition while denying help to equally needy and hard-working Americans who are laid-off for other reasons.

Moreover, a simple tax credit targeted to those who lose who lose their jobs due to layoff would not risk unraveling or jacking up an employer's group coverage. Some policy makers fear that such tax credits to assist the employed uninsured could cause some businesses to drop coverage. Also young, healthy workers could take up credits, leaving employers responsible for the higher-cost group left behind. If credits were limited to laid-off workers and not include working persons refusing health care plans, this would be anything to worry about. One national survey found that 52 percent of uninsured adults lost health coverage because they or a spouse lost their job. No other single cause of insurance loss was re-ported by more than 12 percent of uninsured adults. The only thing these people have to turn to is COBRA, which when unemployed can sometimes be impossible to pay for.

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) is for workers who lost health benefits through voluntary or involuntary job loss, reduction in work hours, or transition between jobs. This gives them the right to continue group health benefits through their current plan. COBRA requires that employers with 20 or more employees that offer group health plans must offer a temporary extension of health benefits. Under COBRA, employees, their spouses and dependent children are eligible to continue coverage for up to 18 months following lay-off or reduction in work hours. Employers are not required to pay for continuing coverage as the did when the person was employed with the company. The workers are responsible for the full price of the plan and may be required to pay up to 102% of the cost of the health plan



If your spouse or domestic partner is covered under employer-based coverage you and your dependent children may be eligible through that plan's dependent coverage. Again, employers are not required to pay for such coverage, and you may be required to pay the full cost of the health plan. For more information, contact your spouse or domestic partner's employer. The only problem with this option can be that you may have to wait till open enrollment to be able to change the policy. Some employers will only let changes to be made if there is a birth, death, divorce or marriage taken place. Other than that most have to wait 12-18 months for the next opportunity to add new people or change their benefits.

Private Health Insurance may be purchased by anyone directly from any company that deals with health plans. However, individual policies are generally priced higher than those through a group plan, and insurers can ask about your health history and may exclude "preexisting medical conditions," deny coverage, or charge less than healthy people a higher rate than they charge healthy people. For more information contact the health plan or insurance broker of your choice listed in the Yellow Pages under "Health Plans" and "Insurance." When deciding on a policy it is best to speak directly with an agent. Make sure you get several different opinions before deciding on a plan.