What To Do If You Lose Your Health Insurance
North American Precis Syndicate
Recent changes mean you may have more options than you realize if you lose your health insurance. (NAPS)
Transamerica Center for Health Studies
(NAPSI)—Losing your health insurance can be stressful and confusing as you
explore the options for new coverage. To recover, it is important to
understand all your options, their costs and potential restrictions before
purchasing new coverage. Careful planning can help you find the coverage that
best meets your needs.
If you are in the market for new insurance, you are not alone. Nonprofit
Transamerica Center for Health Studies’ annual consumer survey found that
over one in three (35 percent) insured adults acquired new health insurance
in the past 12 months. And a strong majority (61 percent) of uninsured
respondents said cost prevents them from obtaining health coverage.
Do you need health insurance? While the Internal Revenue Service no longer
penalizes individuals on their federal taxes if they do not have health
insurance, New Jersey, Massachusetts, Vermont and the District of Columbia
all require residents to be insured or pay a tax penalty. Other states are
considering adopting a health insurance mandate as well, so be sure to check
these tax requirements. Even in states that do not require it, health
insurance can help protect you (and your loved ones) from high medical costs,
expected or not.
It is a very difficult situation when you lose your health insurance—whether
you lost your employer-based coverage, can no longer afford your current
premium on individual coverage, lost your parents’ or spouse’s coverage,
experienced a divorce, or have a new addition to your family. At that moment
of uncertainty and concern for your health, what are your options for new
health insurance coverage?
Join Your Parents’ or Spouse’s Plan
If you are under 26 years old, you may be added or remain on your parents’
health insurance (if it covers children). Adult children can join or remain
on a parent’s plan even if they are married; not living with their parents;
attending school; not financially dependent on their parents; or eligible to
enroll in their employer’s plan.
If you are married and your spouse’s employer-based coverage covers
dependents, you can be added to that health insurance. This change to your
spouse’s employer-based coverage may be limited to the company open
enrollment period once each year.
Shop the Exchange
Another place to look is your state’s Health Insurance Exchange. About 80
percent of customers purchasing a health plan through the Exchanges qualify
for a subsidy on their premiums, depending on their income level. Health
Insurance Exchanges are the only place to offer these subsidies, which are
available for singles with a 2019 annual income between $12,140 and $48,560,
or income between $25,100 and $100,400 for a family of four. (Income limits
are different in states that offer “expanded” Medicaid coverage, meaning a
wider number of low-income residents can qualify.) You can check for basic
information about your state’s Exchange on our website: www.TransamericaCenterforHealthStudies.org.
It is important to know that you have up to 60 days after losing your
previous insurance or experiencing a life event (new baby, marriage, etc.) to
purchase coverage in an Exchange. Otherwise, you have to wait until the
Exchange open enrollment period each fall to sign up.
Determine Eligibility for Medicaid
If you are lower income or unemployed, you may qualify for Medicaid in
your state. Generally, the income limit is about $12,140 for singles and
$25,100 for a family of four, though state requirements vary. Medicaid
provides full health coverage with little or no out-of-pocket cost to you and
your family. Some states have work/community engagement requirements for
adults. You can check a state’s Medicaid income qualifications and
requirements on our website: www.TransamericaCenterforHealthStudies.org.
You can also purchase health insurance directly from an insurance
provider. Health plans with the “essential health benefits” required by the
Affordable Care Act can be purchased directly from health plans, often on the
website. You might also consider working with an insurance broker who can
help you understand the different plan options available to you and the
levels of coverage.
Consider Gap and Short-Term
Some health insurance products that do not qualify as major medical health
insurance are also available. They are sometimes called gap insurance, but
you should know the limitations of these plans before purchasing.
• Critical illness insurance
provides a cash payment if you are diagnosed with cancer, have a heart
attack, suffer a stroke or another serious and costly illness.
• Accident insurance gives you
a cash payout if you are in an accident. A plan may have daily payouts for
specific events, such as a cash payment for every day you spend in the
• Short-term health insurance
plans also do not comply with the Affordable Care Act, but they can provide
you with health insurance if you need a stopgap until obtaining full
coverage. Short-term health plans can provide catastrophic health coverage
but some states limit their availability. It is important to note that
short-term medical plans are not required to cover mental health services,
outpatient prescription drugs, substance use disorder treatment, maternity
care or other essential health benefits. Moreover, short-term plans do not
cover pre-existing conditions and may deny you coverage based on your past
Before you sign up for health insurance again, do your homework and shop
around. That is the best way to make sure you find the best option for your
Transamerica Center for Health
Studies, a division of the nonprofit private foundation Transamerica
Institute®, is focused on empowering consumers and employers to achieve the
best value and protection from their health coverage, as well as the best
outcomes in their personal health and wellness. www.TransamericaCenterforHealthStudies.org.
“Recent changes mean you may have more
choices than you realize if you lose your health insurance. You can learn
about these options from the experts at Transamerica Center for Health
On the Net:North American Precis Syndicate, Inc.(NAPSI)