How to Get Health Insurance when Laid Off

Step-by-Step Guide

1. 1

   Step 1: See that you aren’t getting cut off early.

   You are always entitled to employer sponsored coverage for as long as you’re paid up.
   
   A lot of employers will automatically cut off an employee’s insurance whenever they’re laid off or fired.
   
   Sometimes this is legitimate, but not always.For example, say your insurance costs are automatically deducted from your pay.
   
   If you get paid at the beginning of each month and you get laid off on the 5th, you should still be covered until the end of that month, because the deduction for that pay period has already been made.
2. 2

   Step 2: Make sure you qualify.

   Coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to pay for the entire cost of your health insurance at the employer’s group rate if you lose your job.
   
   COBRA is available to the majority of employees who are laid off or fired, but not all of them.
   
   You are eligible for coverage if you meet one of the following conditions:
   You were laid off.
   
   You quit your job.
   
   Your hours were reduced below the qualifying threshold for health insurance.
   
   You were fired for reasons other than gross misconduct.
   
   If you were caught stealing, vandalizing property, or sexually harassed another employee, you are probably ineligible for COBRA. , If you get laid off, your health plan administrator is required to contact you within a few days to explain your options under COBRA.
   
   You yourself have sixty days from the date of notice to choose coverage under COBRA, and you are eligible for coverage for eighteen months from the date of termination.Your plan administrator will explain any special procedures, but it’s usually a simple process.
   
   You call them or return their mailed notice confirming you do want COBRA coverage, and you pay the premium within 45 days.
   
   Coverage under COBRA is usually very expensive when compared to employer sponsored coverage.
   
   For example, if it was $100 a month for your employer sponsored insurance, it would easily be $400 to pay for through COBRA.
   
   Nonetheless, it is difficult to find equivalent coverage for less on the private market, so it can be a good deal.
3. 3

   Step 3: Talk to your plan administrator.

Detailed Guide

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