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Health insurance options after job loss

Madison (WKOW) --  The sting of losing your job sometimes pales in comparison to the prospect of you and your family suddenly being without health insurance coverage.

Experts told 27 News dislocated workers can be connected with health plans during the transition between jobs.

"There are options,"  director Bobby Peterson of the Madison-based, health advocacy group, ABC for Health.

Peterson and others told us some primary options need to be considered as dislocated workers weigh choices:

• Federally supervised continuation coverage, "COBRA"

This coverage is available to any person whose former employer has twenty or more workers.   It allows the dislocated worker to temporarily remain in a employer sponsored health plan, but with the participant covering the entire cost.

• BadgerCare

This state-supported program is aimed at providing affordable health insurance coverage for children, but their parents can also be covered, depending on their income.

• Private market plans

People dropped from their employer sponsored plans can buy health insurance.   Experts said it's important to compare plans and costs, and also be aware a pre-existing medical condition can disqualify an applicant.

If someone is refused insurance coverage due to a pre-existing medical condition, the Health Insurance Risk Sharing Authority is a pool of higher risk participants.  

"No physicals, no health underwriting,"  HIRSP chief executive officer Amie Goldman told 27 News.

Goldman said federal law requires HIRSP to accept any dislocated worker who has a continuous work history of eighteen months with participation in employee sponsored health plans, is not eligible for COBRA, and applies within two months of losing health insurance.

Goldman said there are over 16,000 HIRSP participants with steady enrollment levels in recent years, but a spike in numbers is possible.

"Certainly, changes in the economy, loss of employer sponsored coverage could affect us.   But because many individuals have access to continuation coverage, if there was going to be an uptick, we might not see until next year."   Dislocated workers are eligible for HIRSP after COBRA benefits lapse.

Experts said dislocated workers may not be aware of the breadth of options available to maintain affordable health insurance coverage.   For example, if a dislocated worker's industry has been impacted by imports or the off-shoring of jobs, federal law provides money to cover up to two-thirds of the cost of health insurance premiums for one year or longer.

Advocates hope proposals to expand health care options for the unemployed are expanded.

"The governor has proposed BadgerCare Plus for childless adults, so people who don't have dependent children could also get some basic coverage,"  Peterson said.

"We're hoping it could be part of the economic stimulus plan President-Elect Obama is talking about."

Experts also told 27 News dislocated workers with health insurance coverage needs must not only do research and shop, but being mindful of the calendar.   They said eligibility for programs often vanishes because applicant deadlines can kick in a short time after the loss of a job and health insurance coverage.

For more information on health insurance options, click here.