Many people worry about losing health insurance if they change jobs or become unemployed. Luckily, the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and the Health Insurance Portability and Accountability Act (HIPAA) offer some protection. However, you need to know exactly how these acts affect you before making any major life changes.

Health Insurance for the Unemployed

According to COBRA, you have the right to continue the same policy that you have through your employer for up to 18 months after you become unemployed. This will protect you while you look for another job.

You get the same coverage, but in most cases, wind up paying more. The good news, however, is that you get to pay a discounted group rate instead of the higher costs of an individual plan.

Keeping Health Insurance When You Change Jobs

HIPPA protects you from losing your health insurance when you change jobs. Before this act, employers could refuse to cover new hires because they had pre-existing health conditions that would increase their group rates. This made it difficult for people to change jobs because they feared the inability of finding comparable health insurance. Now, however, employers cannot refuse to extend the same coverage to you just because you or a family member already has a health condition.

Filling Gaps in Insurance

Many companies have probationary periods for new hires. You might not qualify for any employee benefits, such as health insurance, during this time. Probationary periods vary from company to company, but six months is an average term.

Those who are concerned about losing health coverage during this time should contact private insurance providers to discuss temporary or limited plans. Many companies have plans that limit coverage to emergencies. These plans are frequently called “broken leg insurance” because they only pay for significant injuries.

If I Change Jobs Or Become Unemployed, Can I Take My Health Insurance Coverage With Me?

• COBRA allows people to maintain the same level of health insurance coverage for up to 18 months after leaving an employer, but they usually have to pay higher rates.

• HIPPA ensures that employees moving to a new company can get the health insurance coverage they need even with pre-existing conditions.

• Private insurance is often an affordable way to protect yourself during employee probationary periods.

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