Archive for October, 2009
What if I leave my job?
The Consolidated Omnibus Budget Reconciliation Act
(COBRA), a law created in 1986, gives workers (and members of their family) who lose their health
insurance benefits the right continue their group health insurance for a limited period of time under
circumstances such as voluntary or involuntary job loss, reduction in hours, transition between jobs, divorce, adoption and death.
Generally, the employee pays up to 102% of the premium cost for the same policy; this is still usually less expensive than buying an individual insurance policy.
There are three basic aspects for qualifying for COBRA: the qualifying event, the insurance plan coverage and the qualified person.
Each aspect is taken into consideration when applying for COBRA and you must elect to either apply for COBRA or waive your rights to COBRA within 14 days after a qualifying event.
You must also have been in the group insurance plan during your employment to be eligible. Although there are exceptions, generally you may continue to pay your own premiums to keep COBRA coverage intact for up to 18 months.
Companies who have fewer than 20 employees, State or Federal employers or employee organizations may not offer COBRA coverage.
Check with your health insurance administrator to see if you may qualify. You may also have this information readily available in your group health insurance policy or in your company handbook.
Although it may be expensive, the cost of being able to keep your group insurance coverage rate may be well worth it.
Tags: COBRA, coverage, health insurance policy, individual insurance, individual insurance policy, insurance planWhat Happens When I Retire?
Health insurance considerations weigh heavily on the minds of people wanting to retire before Medicare coverage kicks in at age 65. Many people put off retirement simply because the cost of an individual health insurance policy is too great on a limited income.
What options for health insurance do you have if you choose to retire before age 65? Although they are not required to, you may be able to get COBRA-like coverage from your employer.
As an added retirement benefit, your employer may allow you to pick up the premium on your policy; although paying 100% of your premium may initially appear to be an expensive option, purchasing an individual policy apart from a group may be even more costly and not provide you with the level of coverage you previously had.
Some companies are offering basic high-deductible insurance reasonably in the hopes that they will be able to enroll you in Medicare Part C (supplemental insurance) when you retire.
Another option is to budget and save money to cover your anticipated medical costs for the time period between retirement and age 65. If you are in very good health, this may be a viable alternative for you.
Pre-planning for retirement is an important issue; the earlier you start planning, the better. Realizing the Medicare does not pay all of your medical expenses, you should budget money for medical expenses even after retirement.
Tags: health, health insurance, individual health insurance, medicare, policyinsurance company
As in everything that involves money, it is important
to keep good records of your medical expenses for many reasons.
Keeping track of deductibles, especially for a family,
can be time consuming, but is an important task. Every policy has different deductibles for lab work, hospital emergency room visits, hospital stays, doctor
visits and x-rays, and it is often difficult to track.
Keeping track of your out-of-pocket expenses becomes
very important when it comes time to complete your taxes. It also comes in handy to know what your expenses are for medical care when choosing to change companies or policies.
A file folder that includes a copy of the policy,
copies of your medical bills and copies of what your insurance company has paid on those bills is usually all you will need.
When a bill comes for a provider, you will usually
receive a statement from your insurance company showing what portion of the bill they paid, and many times providers write off the remainder, if it is not a large sum.
If you visit several doctors, you may want to have a
file folder for each doctor or provider.
Insurance companies do occasionally make mistakes, but
they are usually on top of their game. Having a copy of the policy handy makes it easy to check deductible levels and whether a particular service is covered or
not. It also serves as a ready resource for telephone numbers, website information and your contact at the insurance company.