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Health Insurance Q&A: Employer Coverage Loss

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Question:

Profile:

Health Insurance Shopper, requesting individual medical insurance quotes.

Status:

Currently insured by Employer Group Plan.

 

My job may be ending and my spouse and I are on my plan.  So we’re being proactive to look at what our options are.

We are super healthy, very few medical needs, a couple of prescriptions, that’s it, so a high deductible would likely be okay – especially if preventative medicine is fully covered.

I would hope to not be unemployed for ever and would hope to eventually have another employer supported plan, but for right now, we are just *exploring* what the plans look like and how much they would cost.

 

Answer:

Our agency’s response emailed by:

Caroline Ehrenthal, Licensed Insurance Agent

President/CEO of East Coast Health Insurance

 

 If your employer sponsored plan is terminated and/or you do not opt into a Cobra plan option that may be extended to you once you terminate your employment then that would be considered a qualifying life event and yield a 60 day special enrollment period in which you could enroll into an Affordable Care Act plan. 
I could check to see if you would be eligible for a tax credit which would be based on your household size, ages, smoker statuses and total projected household income for this year (which I understand could change once you secure a new position). 
We could also compare that with a Short Term Major medical policy which sounds like you would qualify for since you don’t have any pre-existing conditions.  It is a viable alternative however, you need to be aware that those are less expensive (especially if you are not eligible for a tax credit) because they are medically underwritten and can deny someone coverage based on their pre-existing conditions. 
They also do not cover pre-existing conditions and do not meet the requirement of being considered minimum essential coverage so you could be subject to the tax penalty or individual responsibility payment (2.5% of the household income or maximum $2085 or prorated amount if you did not have minimum essential coverage for at least 10 months out of the year).
I hope this helps – give us a call once you know when you’re going to be losing coverage.
Thanks,
Caroline

 

 

If you think you may be eligible for a qualifying event, please feel free to email us at IFP@echealthinsurance.com or call 888.803.5917.

 

Licensed agents are available to assist you with your questions – even if you aren’t sure what you may qualify for.

 

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B. Somers

B. Somers is a contributor to Health Insurance News, focusing on medical coverage, carriers, public programs and Obamacare. Writing for East Coast Health Insurance since 2012, she got started with healthcare and insurance news at its most exciting time in U.S. history.
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