Know your options

The Guide Health Insurance for the Unemployed

The Guide

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Which Option is Right for You?

Since every individual' situation is different, we can't answer this question for you. However, we can try to point you in the right direction by outlining your considerations for each option available to you. Factors that will determine your personal decision will include: a) your health status, b) your likelihood of quickly finding new employment, c) your financial situation, d) the cost of your COBRA, e) the number of dependents to whom you should also provide insurance, f) the state in which you reside and g) your age. Given so many variables, the best option for one individual may not even be a possibility for somebody else. This is a big decision that you need to make cautiously and give adequate consideration to all of the benefits and potential risks in each of these choices. To help summarize the options discussed in this guide, on the next page is a comparison chart that lists some of the potential "Pros" and "Cons" for each.

In reviewing this plan comparison chart, please don't assume that if a featured plan type has more "Pros" than "Cons" that is suggest this is your best choice. You must closely consider the weight of each of these items in determining which option is best for you. This is merely a simplified chart intended to assist you in your analysis. Also keep in mind that health insurance regulations vary from state to state and not all of the information in this guide is applicable to everybody.


OPTION PROS CONS

COBRA

Guaranteed Issue Has Expiration Date
No Lapse of Coverage Can be costly
Maintain Current Level of Coverage Ex-Employer can cancel group plan or switch carriers
Possible eligibility for 65% premium reduction under ARRA Limited Plan Options
Simple to enroll

Individual / Family Health Plans

Permanent issue - No expiration prior to Medicare eligibility Underwriting and eligibility requirements to enroll
No Lapse of Coverage Can be costly
Maintain Current Level of Coverage Ex-Employer can cancel group plan or switch carriers
Possible eligibility for 65% premium reduction under ARRA Limited Plan Options
Simple to enroll

Short Term Health Insurance

Quick and easy to enroll Has Expiration Date
Choice of deductibles Excludes benefits for pre-existing conditions
Coverage from 30 - 365 days
Lower monthly premiums
Simple to enroll

Limited Benefit
Plans

Provide basic benefits for individuals with no other option Exclude benefits for pre-existing conditions
Inexpensive Comparably low benefit caps on claims payments
Guaranteed Issue Will not provide adequate protection for major expenses

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