Overview on USA Healthcare Insurance - Status of Health Insurance Coverage upon Resignation from an Organization

Dealing with Health Insurance cover upon Resignation from an Organization

If an employee resigns from an organization wherein he/she was granted employer-sponsored health insurance policy, that individual would like to ensure that he/she has the facility of continuous policy coverage against the incurred exorbitant costs on healthcare. Whether an individual resigns the job of his/her own accord or is forced to resign or is terminated from the services of the organization, there is a Federal law that may help the concerned individual to maintain coverage. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985, group health insurance plans sponsored by employers having 20 or more employees are required to offer continuous coverage for the concerned employee and his/her family for 18 months after the job. In order to avail the benefits provided by the insurance cover under COBRA, the employee must notify his/her employer that he/she intends to do so within 60 days of resigning from the job. Since the employee resigns from the job, he/she must pay the entire premium for the cost of the insurance cover. Some States in USA have enacted laws similar to COBRA that apply to employers with less than 20 employees on their pay-roll muster. It is always recommended to contact the concerned State Insurance Commissioner in order to know more details whether such law is applicable in his/her concerned State. For getting the contact details, one must check the blue pages of the telephone directory. Incase, if COBRA does not apply in his/her case, it is possible that the concerned individual may convert group insurance policy to individual coverage. Other alternatives include to purchase a short-term health insurance policy if he/she plans to seek another job in the near future. Incase, if the individual opts for starting his/her own business and become self employed, he/she can obtain health insurance cover through a trade or professional association.

By possessing health insurance cover, it helps in providing immunity and protection against the inflated healthcare costs incurred that majority of the public are unable to meet such unplanned expenses. Moreover, a health insurance cover helps to pay for the incurred healthcare expenses and it ensures that an individual has access to medical care whenever required by him/her. A substantial research conducted has that possessing health insurance cover is directly proportional to the quality and promptness of healthcare services. Before taking a decision regarding purchase of a health insurance cover, it is always advisable to read the brochures or information booklets and policies of the plans that he/she is interested in and consider the plan for acquiring more specific information. Studies show that the time invested in researching regarding the health insurance cover options for himself/herself definitely makes a big difference-not only regarding out-of-pocket expenses to be paid for healthcare/medical services not covered under the ambit of the plan, but also incorporates the accessibility of availing the healthcare products and services when required and regarding the customer satisfaction derived under the plan. If an individual has the option of enrolling for health insurance policy cover via his/her employer in which he/she is employed or through a group or organization to which he/she is a member, that person can certainly have access to group insurance coverage. In certain instances, there is only one plan with no other alternative or option to choose from, but in majority of the cases, there are several insurance plans from which an individual can choose, based on his/her requirements. Moreover, it is of utmost importance to compare plans carefully to decide which suits his/her requirements. An individual should contact each plan, he/she has short listed and considers it worthy to suit his/her requirements and ask the insurance companies for a summary of the benefits provided under various insurance products and services provided by them. A customer has the liberty to ask queries to clear his/her doubts if certain concepts remain unclear to him/her. Such doubts can be cleared even by your consultant or family physician or a doctor whom an individual may be considering to participate or incorporate under the plan. To be sure and safe, an individual should also contact the doctor’s clinic to confirm whether they accept the plan or not.