Healthcare Subsidy May Help Unemployed Cover Healthcare Cost at Crucial Time

Lawmakers are scrambling to work out the kinks in the Financial Stimulus Plan. One of the plans focus has been on consumer healthcare cost and ways to insure healthcare for families in this economic crisis. Recent reports say all the details are not yet known as the house and senate work to finalize the plan, but the outcome should be good and released as soon as the end of March. The purpose of the COBRA subsidy is to help many Americans who are losing employment maintain coverage. The plan will provide as much as 21.4 billion in COBRA healthcare subsidies.

What does this mean for you?

If your recently lost your job and have been unable to secure new employment you will most likely be required to accept COBRA to maintain your personal or family employment health coverage. According to the new bill the government will subsidize somewhere between 50-65% of the premium. The length of the subsidy plan will run from 9 months to as long as 18 months. However single filers and married filers will lose eligibility at incomes over $125,000 and $250,000 respectively. Also of worthy research is what many A rated health carriers have designed for this purpose is temporary health insurance or also known as short term medical coverage. Short Term Medical Insurance is a form of health insurance that is typically used for covering gaps on permanent health insurance coverage. Temporary Health Insurance can be anywhere from for 1 to 12 months and most Temporary plans can be renewed. Temporary heath insurance plans are a smart way to protect you or your family members during an unemployment period.

Even if you locate new employment you may face a waiting period from 90 to 120 days for employer benefits. The same carriers that provide group health plans provide short-term medical insurance and individual plans including: Well care, Aetna, United Healthcare- Golden Rule, Humana , Blue Cross Blue Shield and Assurant health. Consumers can obtain many of the same features and benefits offered with permanent health plans such as co-pays, prescription drugs, choosing doctors, deductible options, hospital benefits, ambulance services, surgeries and transplants.

These features and services as well as cost will vary from one insurer to the other and should be reviewed. One interesting fact is if you had creditable coverage from an employer in the last 12 months you can qualify for short term medical by simply applying and answering a few simple health questions. These two options are important to the American public as statistics estimate unemployment rate approaching 10% many will find that health care cost will be the first expense they will let slide.

Christopher Beard is a specialist in helping people with insurance planning strategies. He is the president of Trinity 1 Financial Group and works with clients with planning insurance strategies visit his site at http://www.trinity1financialgroup.com

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