Insurance Options for Those Who've Lost Coverage

You could find yourself without health-care coverage for any number of reasons, including retirement, being fired, relocation, divorce or your employer's decision to terminate such benefits.

So what do you do? Here are the steps that you can take to ensure that you maintain coverage.

Assess the Situation
If you are married, the first thing to check should be whether you can get coverage through your spouse.

This may well be the most cost-effective option for maintaining health coverage. If group health coverage is available, you qualify for special enrollment. This allows you and your dependents an opportunity to enroll in a plan for which they are eligible, regardless of normal enrollment periods. Be aware, though, that to qualify, enrollment must be requested within 30 days of losing eligibility for other coverage. After you request special enrollment, your coverage will begin on the first day of the next month.

COBRA
The Consolidated Omnibus Budget Reconciliation Act of 1986 gives employees who do not qualify for Medicare the right to continue their health coverage. You qualify following a reduction in hours and voluntary or involuntary termination of employment for reasons other than gross misconduct. For a spouse, additional reasons include the covered employee becoming entitled to Medicare, divorce, legal separation and their death.

Employers with 20 or more employees are normally required to provide coverage under COBRA. Many states also have similar laws, so check with your state insurance commissioner to see if coverage is available. To be eligible for COBRA coverage, you must have been enrolled in your employer's health plan and the health plan must continue to be in effect for active employees.