Throughout much of 2020, the COVID-19 pandemic has devastated the U.S. economy, causing massive layoffs and forcing millions out of work. The numbers so far are staggering. The U.S. Bureau of Labor Statistics found that the unemployment rate sharply increased in April by 10.3 percentage points to 14.7 percent as the number of unemployed persons rose to 23.1 million. As a result, millions in the U.S. have faced the prospect of becoming uninsured if they lose their employer-sponsored insurance (ESI) plan and fail to find other coverage.
Compare Health Insurance PlansNow more than ever, health care is critical for you and your family. Although we’ve previously discussed health coverage options for the unemployed (see our post here), this unprecedented time warrants a closer look. If you’ve recently lost your job, here are a few ways to get health care, with some updates related to the current pandemic situation.
COBRAContinuation of your current health coverage may be available under the Consolidated Omnibus Budget Reconciliation Act (COBRA). This is typically an expensive option since you would generally be required to pay the entire premium for coverage up to 102% of the cost of the plan. Normally there is a 60-day period in which you may elect COBRA coverage, after receiving proper notice, followed by 45 additional days to make the first payment. In response to the pandemic, the Department of Labor and the Internal Revenue Service extended certain COBRA deadlines until 60 days after the announced end of the national emergency period (or a later date to be announced in subsequent guidance).
Dependent CoverageIf you’ve lost your job, you may be eligible for employer-based coverage through a family member’s plan. You may have been covered as a dependent prior to them losing their job, or you may be able to switch from your own coverage to coverage as a dependent. Keep in mind that if you’re younger than 26, the Affordable Care Act (ACA) allows you to be covered under your parent’s insurance policy.
MedicaidIf your income has fallen below certain state limits, you may be eligible for Medicaid, which some states have expanded under the ACA. You can generally qualify if your income — based on your household income plus any state unemployment benefits received — is below 138% of the federal poverty level. Note that any supplemental unemployment benefit from the federal government would not be included in this calculation. In states that have not expanded Medicaid under the ACA, eligibility varies, and is generally limited to incomes below 50% of poverty.
Children’s Health Insurance Program (CHIP)Your children may be eligible for the Children’s Health Insurance Program (CHIP). This program provides low-cost health coverage to children in families earning too much money to qualify for Medicaid benefits. All states offer comprehensive CHIP coverage (i.e., routine check-ups, immunizations, doctor visits, emergency services, etc.), and work closely with their state Medicaid programs. In some states, CHIP covers pregnant women. You can apply for and enroll in CHIP any time of year, as there’s no limited enrollment period for either Medicaid or CHIP, and your coverage can begin immediately if you qualify.
MarketplaceIf you’ve lost your job-based coverage but don’t qualify for government programs such as Medicaid or Medicare, consider the ACA marketplaces. Subsidies for marketplace coverage are available to a family income between 100% and 400% of the federal poverty level ($12,490 to $49,960 for individuals, $16,910 to $67,640 for a family of two and $25,750 to $103,000 for a family of four). Unlike for Medicaid, income here includes any state and federal unemployment benefits received, including the $600 per week federal supplement. While most states’ open enrollment periods have ended, special enrollment periods may be available in response to the pandemic. To find out about special enrollment, check with your state’s department of health care services.
Short-Term PlansAnother option for workers who have lost their ESI is to explore short-term plans. These may be offered for up to a year and can sometimes be renewed. Although short-term plans generally have lower premiums, ACA subsidies cannot be used toward them. Another drawback is that they often provide more limited benefits and may deny coverage on pre-existing conditions. For this reason, during the current pandemic, short-term plans could be risky given the long latency period between initial infection and COVID-19 sickness.
Compare Health Insurance Plans & Prices Community Health CentersFor those who can’t afford a health plan and don’t qualify for government programs, low-cost health care at nearby community health centers may be available to you. How much you pay depends on your income. Located in both urban and rural areas, they provide prenatal care, infant shots, general primary care, and referrals to specialized care, including mental health. Keep in mind that although community health centers are an integral part of the national response to the pandemic, your local health center may not currently have COVID-19 testing capability. Find out a center’s availability for COVID-19 screening and testing in advance. You can go to this website to find a community health center near you.
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