What happens when I lose my job-based health insurance coverage?

Question: What happens when I lose my job-based health insurance coverage?

Answer:

If you worked for a company with 20 or more employees, your employer is required to inform you of your right to purchase COBRA continuation coverage. With COBRA, you can continue to enjoy the exact same coverage you had while you were an employee, but you must pay the full premium, plus a 2% administrative fee. The cost of the premium may be higher than you expected, because many employers subsidize the cost for employees. COBRA coverage is temporary, lasting 18-36 months depending on your situation.

If you are eligible for COBRA coverage, it is generally in your best interest to elect it. If you are unable to secure other health insurance before your COBRA coverage expires, electing and exhausting COBRA makes you eligible to purchase an individual policy no matter what your claims history or health status is.

If you work for a smaller company, you may still be eligible for continuation coverage through a state program. State continuation coverage tends to be much shorter in duration than COBRA coverage. Contact your state’s department of insurance for more information.