New Job? Navigate Health Insurance Options During This Qualifying Life Event

At any moment in America, more than 65% of working-age adults are on the hunt for a new career. If this describes you, you may wonder how to continue health coverage if a job ends or you’re looking for something new.

“Gathering information, and knowing what it means, is the best way to make sure you’re making the best decisions on health coverage,” said Tara Stombaugh, Director of Consumer Sales and Client Services with Avera Health Plans. “Letting coverage lapse is never a good decision.”

So what do you do to ensure you and your loved ones are covered? First, know your options. When you lose your job for any reason, even if you quit or get fired, you can enroll in a plan through the federal Marketplace. You’ll qualify for this special enrollment period to get coverage for the rest of the year.

Other options include:

• If you find a new job and your new employer offers affordable coverage, take advantage.
• Your spouse’s employer, if it offers coverage at a good rate.

Stombaugh said the marketplace may not offer subsidies or tax credits if your employer offers affordable insurance. “Compare every option,” she said.

Timing for New Coverage is Vital

Your options may have time restrictions. You’ll typically have 30 or 60 days to change your coverage outside of open enrollment. Timing also can include when you get a new job.

Make sure you address that timing:

• Learn exactly when your existing insurance coverage ends. It will vary, since some employer coverage lasts until the end of the month in which your employment ends.
• Make sure you elect timely insurance. If your coverage, for example, ends Dec. 31, get coverage that starts Jan. 1. “No lapse is important,” Stombaugh said.
• Talk with your insurance provider about special enrollment periods due to job change and loss of coverage. You may be able to change plans up to 60 days before or after the qualifying life event.

"If you lost previous employer coverage, you should check opportunities with your spouse's employer or the Marketplace," she said. "If starting a new job, know the new-hire enrollment periods details."

Coverage Options If Your Job Ends

You’re not out of luck if your employer closes its doors or decides to downsize. Whether you quit or get laid off, options include:

• Extending existing coverage under the Consolidated Omnibus Budget Reconciliation Act or COBRA. While expensive, COBRA coverage can help until you get a new job, especially if you’re undergoing treatment.
• Your spouse’s plan. Losing your job can open a special enrollment period via your spouse, so you could get coverage. You could, as a couple, also change plan types in case you need it.
• State laws often require smaller companies (with 20 or fewer employees) to provide continuing coverage, in addition to and beyond federal rules.
• Parent or spouse plans. Before your 26^th birthday, you qualify for health insurance through an Affordable Care Act-compliant family plan your parents may have.
• Federal programs, such as Medicare (for people 65 or older or people with disabilities) and Medicaid, which covers people who meet income guidelines. This includes states that have passed Medicaid Expansion, like South Dakota. The ncome qualification is 138% of poverty level or around $20,000 for one person.

Stombaugh said another consideration is income level. If the premium cost at a new job is more than an estimated percentage of your family’s income, you may qualify for Marketplace tax credits. It’s fairly standard for these plans to fall below the 9% income affordability index.

Learn About Employer Health Insurance Plans

Once you make a choice, take time review your health needs.

Coverage varies from employer to employer and plan to plan. Learn about your coverage, out-of-pocket costs, monthly premiums, deductibles, coinsurance or co-payments. Affordable health coverage is a must. If you can’t afford your employer’s health insurance plan, you still have options.

“It’s worth doing the homework to get the best coverage for you and your family,” said Stombaugh.

Learn more about how to choose a plan. If you have questions about individual coverage, an agent can help, too.