How To Get Medical Coverage When You Stop Working

credit: Biology Big Brother

If you stop working because you lose your job or you make the decision to retire early, it’s important to consider the different avenues for getting medical insurance coverage. For many people, the shock of how much the full payments will be, compared to the lesser amount they had to contribute while they were employed, is enough to make them give up medical coverage, but there are definitely better ways. About.com lists the possibilities in the following order of priority:

1. Check if you can remain on your employer’s plan - this is sometimes possible as part of a severance package, but usually only for a couple of months.
2. If you have a spouse, sign up to their plan. This will usually be the cheapest option available; but of course, not everybody has a spouse who’s working.
3. Find out if you are eligible for coverage through COBRA (the Consolidated Omnibus Budget Reconciliation Act). Most employers have to give you access to your previous health coverage, for a time varying from 18 months to 36 months. But you will have to pay the full cost of the coverage rather than the employer-subsidized cost.
4. If that doesn’t work out, and you have no large gaps in coverage over the years, then you are also entitled to continuing coverage thanks to HIPAA (the Health Insurance Portability and Accountability Act). That means you can continue with medical insurance like you’ve had, without having to deal with a new individual policy that might not cover your for pre-existing conditions and would need a physical exam.

Tags: COBRA | Life Hack | Medical Insurance | Retirement