What Happens if an Employer Terminates Health Insurance Without Notice?
If your employer cancels your health insurance without your knowledge, then don’t panic. There are several options open for you such as COBRA, benefits from your spouse's insurance plan, low-cost insurance from the market place and government health insurance
Let’s check out the answers to some similar frequently asked questions.
Am I eligible for COBRA if my employer stops offering health insurance?
No. COBRA lets you keep your company’s health insurance plan when you lose your job. So, when your company cancels your health insurance, there is no company-sponsored health plan you can continue with. In such cases, COBRA is not applicable.
In such instances, you can find a new health insurance policy. You can get one through the Marketplace available under the Affordable Care Act.
If I lose my job, will COBRA keep me insured?
Yes. You can keep the current health plan provided by your employer in case you are laid off under COBRA. Usually, you will have coverage for a maximum of 18 months.
Remember, buying health insurance through COBRA can be quite expensive. As long as you are working, your employer is most likely paying the premium.
Once you are out of work, you will need to pay the entire premium yourself. You will also end up paying administrative fees on top of the premium. `
If I lose my employer’s insurance, can I get benefits under my spouse’s insurance plan?
You might be able to get benefits under your spouse’s insurance plan if their employer sponsors the health insurance policy.
Employers allow policyholders to add a spouse or a child to a group health insurance package. This can be done during the first few weeks of the open enrolment period.
However, there are exceptions to this. For instance, when the family changes or a spouse loses health insurance, insurance benefits might be rescinded.
It is highly suggested to check with the HR department at your spouse’s workplace.
If I lose my job or my employer cancels my insurance, can I buy health insurance coverage from the Marketplace?
Most likely, you can. The Marketplace is a convenient way to buy insurance online.
If you have lost your job or your employer cancels your insurance, you qualify for a special enrolment period. You may also qualify for a subsidy to help you buy insurance according to your income.
Are there any government health insurance plans I may be eligible for?
Yes, there are several government insurance plans you may qualify for if you lose your job or your employer cancels your insurance.
Some of the options you have are:
#1. Medicaid – If you have a low income, are pregnant or disabled, then you can buy insurance through Medicaid.
#2. CHIP – CHIP is short for the Children’s Health Insurance Program and is created for eligible kids whose parents’ income qualifies them.
This means that if a family cannot afford private health insurance but make enough to be ineligible for Medicaid. Find out if you are eligible for this, as the rules depend on the specific state you reside in.
#3. Medicare – If you are over 65 years old, or are disabled, then you become eligible for Medicare coverage. This is a federal-sponsored health insurance program for seniors and people with disabilities.
If your employer cancels your health insurance or loses it because of being laid off, then there are several different options.
You can either choose to get on your spouse’s employer-sponsored insurance or buy affordable policies from the Marketplace.