How to Keep Your Health Insurance Up to Date While Changing Jobs

Your health insurance policy may be impacted by a change of employment. Find out how to prevent a coverage lapse. It can be expensive to have a gap in insurance between jobs, particularly if you are sick or hurt. The good news is that COBRA frequently allows you to re-enroll in the plan offered by your former employer.

1. Speak with Your Employer

It's crucial to get in touch with your employer if they provide group health insurance to find out how to keep your coverage when you change jobs. This will help you understand when your existing coverage expires and the procedures involved in obtaining new coverage. In addition, you can inquire about programs designed to fill coverage gaps with your neighborhood insurance agent. Though their coverage durations are typically shorter than those of traditional health insurance, these limited-term medical plans can nonetheless give people access to the healthcare they need while they wait to enroll in employer-sponsored, long-term coverage. While changing jobs might be stressful, it's crucial to protect your health insurance. You may negotiate employment changes with confidence and peace of mind by knowing your coverage options, weighing your options, and making well-informed selections.

2. Sign up for COBRA.

The Consolidated Omnibus Budget Reconciliation Act, or COBRA, permits people to stay on their prior employer's health plan for up to 18 months following a qualifying event, most commonly a job loss. Children who were covered under the plan but are no longer dependents (due to divorce or age) are also eligible, as are the covered employees of the plan and their spouses. An election notice from your previous employer with information on how to enroll should be sent to you if you qualify for COBRA. Enrollment must be completed by 60 days of the date on your election notice, whichever comes first, or within 60 days of your qualifying event. If not, the day your employer's plan terminates will mark the end of your COBRA coverage.

3. Sign up for a Marketplace Program

While changing jobs is common and inevitable, you can help guarantee there isn't a coverage gap by carefully arranging ahead of time. When it comes to health insurance, this is particularly crucial. Talk to your employer about your existing coverage if you know you're going to move jobs. Find out whether there are any transitional periods and when your existing plan expires. After losing your job, you can apply for marketplace coverage through the marketplace in your state during a special enrollment period (SEP). Your unique needs can be catered for in these plans, including deductibles, provider networks, and financial aid such as cost-sharing reductions and premium tax credits. These plans also don't exclude pre-existing diseases or require medical underwriting. In addition, you can qualify for other advantages based on your income.

4. Switch Providers

People changing jobs should find out from their future plan administrator if their new company will cover the same physicians, hospitals, pharmacies, and health networks in order to guarantee continuity of care. If not, it's critical to look into other possibilities. People who are changing jobs should also become aware of special enrollment periods, which provide an extra chance to get high-quality insurance outside of open enrollment. Generally, you need to have gone through a qualifying life event—such as losing your job and the accompanying employer-sponsored health insurance—in order to be eligible for a special enrollment period. Additionally, it's a good idea to look into joining organizations or associations for professionals, as they might provide access to reasonably priced group health insurance policies. One of the most important steps in guaranteeing access to quality healthcare and lowering the total cost of medical bills and treatments is closing the coverage gap in health insurance.

5. Modify your strategy.

Making sure you have enough health insurance coverage requires careful planning, whether you're relocating to a new place of employment or departing your current one. You may reduce financial stress and successfully navigate professional transitions by evaluating your current coverage, looking into new options, and making informed decisions. Joining the employer plan of a spouse or domestic partner is one option to think about. Usually, certain life events will cause a special enrollment time during which this is feasible. A lot of professional associations and groups also provide group health insurance plans, which might be less expensive than those available on the individual market. It's also important to assess the costs of the various Marketplace plans in relation to your coverage requirements and financial limitations. It might also be beneficial to investigate short-term medical insurance, which might offer reasonably priced coverage for a maximum of one year.