Life is full of changes and transitions, some planned and some unexpected. These changes can have a significant impact on our health insurance coverage, which is why it’s essential to understand how these changes can affect our coverage and plan ahead to avoid any gaps in coverage. Here are some of the major life changes that can impact our health insurance coverage:
Leaving a Job
Leaving a job is one of the most common reasons for a change in health insurance coverage. When leaving a job, you may lose your employer-provided health insurance benefits, leaving you without coverage. It’s essential to understand your options and make a plan to maintain coverage during this transition.
Maternity or Parental Leave
If you’re planning on taking maternity or parental leave, it’s crucial to understand how it will impact your health insurance coverage. Your employer-provided benefits may not continue during your leave, leaving you without coverage. It’s important to make a plan to maintain coverage during this time.
Sabbatical
Depending on the terms of your sabbatical and your employer’s plan, you may not be eligible for health insurance coverage under your employer’s plan. It’s important to understand your options and make a plan to maintain coverage during this time.
Change in Marital Status
A change in marital status, such as a divorce, can impact your health insurance coverage. If you received sole coverage under your partner or spouse’s plan and separate, you may lose coverage. It’s important to make a plan to maintain coverage during this transition.
Self-Employment or Retirement
If you’re starting to work for yourself or retiring, you will need to obtain private health insurance coverage. It’s important to research your options and make a plan to obtain coverage that will cover your key health needs.
Why You Should Avoid Gaps in Health Insurance Coverage
No matter what the reason for the change in health insurance coverage, it’s important to avoid gaps in coverage. Here’s why:
Emergency Situations
Emergency situations can happen at any time, leaving you with hefty medical bills that would otherwise be covered by health insurance.
Pre-existing Conditions
Many health insurance plans do not cover pre-existing conditions. If you wait to obtain coverage until after you’ve experienced a change in health, you may not get the coverage you need.
Affordability
Premiums are typically calculated through an underwriting process that reviews your medical history. You’ll pay less for your plan if you obtain coverage while you’re in good health.
How to Plan Ahead to Avoid Gaps in Health Insurance Coverage
While some life changes may be unexpected, others can be planned for. Here are some tips on how to plan ahead to avoid gaps in health insurance coverage:
Research Your Options
If you’re anticipating a change in health insurance coverage, research your options in advance. This will allow you to make an informed decision and avoid gaps in coverage.
Find Out What New Employers Offer
If you’re leaving a job and looking for a new one, find out what kind of health insurance plans and benefits are offered at potential new employers. You’ll also want to know how long you have to wait as a new employee before you’re eligible for new benefits.
Consider Coverage During Leave
If you’re taking a leave, such as a sabbatical or a maternity/parental leave, consider if you’ll have coverage through a partner or spouse plan during this period as a dependent. If not, you may still be able to receive coverage during this time from your employer. Ask what’s possible and if that’s an option.
Save for a Rainy Day
What to Do When Faced with a Gap in Health Insurance Coverage
Despite all the planning, sometimes circumstances can shift suddenly, and you might find yourself without coverage. If this happens, there are still some things you can do to mitigate the situation.
Consider getting a short-term health insurance plan. These plans are typically designed to provide temporary coverage for individuals in transitional periods, such as job loss, sabbaticals, or while in between jobs. These plans can be purchased for as little as one month, and up to a maximum of three months, depending on the provider. Keep in mind that short-term plans often have limitations and exclusions, and may not provide the same level of coverage as comprehensive plans.
Look into COBRA coverage. If you’ve recently left your job and had coverage through your employer, you may be eligible for COBRA continuation coverage. COBRA is a federal law that allows you to keep your health insurance for up to 18 months after leaving your job, as long as you pay the premiums yourself. While COBRA can be expensive, it may be a good option if you need a short-term solution to bridge the gap in coverage.
Consider a health sharing plan. Health sharing plans are not traditional health insurance plans, but rather are membership-based programs where members contribute a monthly amount that is then used to pay for healthcare expenses of other members. While health sharing plans are often more affordable than traditional health insurance plans, they may have limitations and may not be the best fit for everyone.
Final Thoughts
Leaving a job or experiencing a major life change can be stressful enough without having to worry about health insurance coverage. While it may be tempting to put off getting coverage or to skip paying for a private plan, it’s important to remember that having a gap in coverage can be risky and expensive.
By planning ahead, researching your options, and considering short-term solutions, you can help mitigate the impact of a potential gap in health insurance coverage. And if you do find yourself without coverage, remember that there are still options available to you.