Losing Health Insurance? What To Do Next!
If you’ve lost or will be losing job-related health insurance in the midst of the coronavirus crisis, you need to take action quickly. A number of options have time-limited deadlines, ranging from 30 to 60 days from the loss of coverage, so it’s important to promptly secure the documents, such as proof of job and health insurance loss, that you’ll need when applying for insurance under the Affordable Care Act (ACA) or Medicaid.
*[KEY NOTE] If you experience loss of income and have been paying for your own insurance under the ACA, you can revise your estimated yearly income and perhaps get a subsidy and lower monthly premiums.
If you need to get health insurance now, mind these deadlines, which start from the date you lose your previous coverage:
- 30 days to be added to a spouse's or parent's health insurance (under 26 years of age)
- 60 days for the special enrollment period on the Health Insurance Marketplace
Click the Toggles Below for more information:
The situation is changing rapidly, and some companies, such as Macy’s, are still paying health insurance for furloughed employees. The CARES Act has a number of provisions to give incentives to employers who maintain their workforce, such as employee retention credits. So stay connected to find out about your company's plans. You'll also want to stay in touch with your employer to get the documents you need to verify your dismissal and loss of health insurance.
If your spouse or parents (if you are under 26 years old) have a health insurance policy, you may be able to join it during the 30 days after you lose your own health insurance coverage. This will often involve extra premium costs for your spouse or parents, but will probably be among the least expensive options for replacement coverage for you.[6]
Medicaid is the nation’s largest health insurer and offers enrollees health insurance that is, on most measures, as good as (and sometimes better than) private coverage. Depending on where you live in, Medicaid can be an available, low-cost option or impossibly hard to get. The best route for checking on Medicaid eligibility is to visit Medicaid.org and click on your state. [7] [8]
Low income alone is a qualifier for Medicaid in the 36 states plus the District of Columbia that have accepted Medicaid expansion under the ACA. If you now earn below $1,400 monthly as a single person or $2,950 monthly for a family of four, you are probably eligible. (You must include unemployment benefits in this calculation, but not temporary payments under relief or stimulus programs.) [1] [9]
If you live in one of the 13 states that have not accepted Medicaid expansion, you need to be a parent or meet other qualifications. Minor children may qualify for coverage even when parents don’t.
When you or a member of your household loses health insurance, a special enrollment period that extends 60 days from the loss of the job and health insurance allows people to buy an ACA policy on the Health Insurance Marketplace. In addition, 11 states and the District of Columbia exchanges have reopened ACA enrollment for various periods so that anyone may apply. The states are: California, Colorado, Connecticut, Maryland, Massachusetts, Minnesota, Nevada, New York, Rhode Island, Vermont, and Washington.
The White House recently decided not to reopen enrollment on the federal exchange. However, a number of life events—including getting married or having or adopting a baby—will qualify you for special enrollment, so check it out here. Be sure you have, or can obtain, the documents you need, such as a letter from your employer or from an insurance company.
As a self employed business owner or independent contractor, you are in a unique position to radically reduce your cost for health insurance premiums, by levering few tax components. You are able to deduct both medical and business expenses to modify your gross income to qualify for more tax credits, also there are many other tax strategies to take advantage of.
To learn how to take advantage of tax favored plan options for self employeds. Click the learn more below.
Mid Michigan Health Insurance Advisors LLC (MMHIA) is one of the nations top Managing General Agencies for helping provide more affordable coverage options for individuals. Click here to see our recognition letter from CMS. Our founder and principal is Eric Culpepper a Healthcare Reform Expert you can view his biographical information here
If you can not qualify for Medicaid, on exchange plans will provide comprehensive coverage as well, and understanding how to leverage tax components is a smart way to make Marketplace plans more affordable. Although anyone can facilitate their own application online, we don't recommended it, there is no cost to to obtain a life and health insurance expert to ensure your best chance of getting quality and affordable coverage.
KEY TAKEAWAYS:
Having individual health insurance provides continuous coverage because you don't lose it when between employment and rarely do most people keep the same job until age 65. You can review all the advantages of individual plans by clicking here.
During the pandemic we are recommending everyone try and keep their current group coverage for the duration, if your employer will continue their contribution to your plan you should work with your company plan administrator to see what they are planning.
If you should lose your health coverage and is offered COBRA as a means of continuous coverage, it is NOT recommended even if the company subsidize your COBRA payment, this is still the most costly option. Instead try and get Medicaid, or a Marketplace plan, these plans will provide the most comprehensive coverage, especially if you can qualify for a subsidy. To review all features of ACA plans click here.
We recommend avoiding non ACA compliant plans, such as short term, hospital indemnity, and shared ministry plan options, these types of plans work best when you are healthy for routine check ups and wellness visits, but during a global pandemic outbreak, you will need comprehensive credible coverage, that meets the minimal essential benefits.
We recommend you continue to work with a trusted local health insurance agent, your plan administrator or company benefit adviser, they can be a reliable source of information and guidance, during this time.
Be mindful that the CARES Act requires insurers to cover the cost of testing for the coronavirus and expands coverage of tele-health visits, but it does not cover the cost of treatment for COVID-19.
Open Enrollment
Nov 1st through Dec 15th
You will need a qualifying life event in order to trigger a Special Enrollment Period, meaning you will not have to wait to enroll during the Annual Enrollment Period beginning Nov 1st through December 15th. Click here for a detailed explanation of how the SEP works. Please keep in mind you have 30 days to apply for coverage from the date the life event occurred.
- Loss of health coverage
- Losing existing health coverage, including job-based, individual, and student plans
- Losing eligibility for Medicare, Medicaid, or CHIP
- Turning 26 and losing coverage through a parent’s plan
- Changes in household
- Getting married or divorced
- Having a baby or adopting a child
- Death in the family
- Changes in residence
- Moving to a different ZIP code or county
- A student moving to or from the place they attend school
- A seasonal worker moving to or from the place they both live and work
- Moving to or from a shelter or other transitional housing
- Other qualifying events
- Changes in your income that affect the coverage you qualify for
- Gaining membership in a federally recognized tribe or status as an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder
- Becoming a U.S. citizen
- Leaving incarceration (jail or prison)
- AmeriCorps members starting or ending their service
Good information.