Healthcare Options for the Unemployed
Low Cost and Free Programs Offer Help with Medical Costs
Most Americans receive health insurance benefits through an employer based system in which the employer subsidizes all or part of the plan premiums. So with the current recession costing many their jobs, more and more Americans find themselves dealing with the double whammy of loss of income and loss of health insurance.
There are several programs available through the government as well as through private corporations and insurance companies that can provide assistance to the unemployed in covering their medical costs.
COBRA
COBRA, or the Consolidated Omnibus Budget Reconciliation Act, was passed by Congress in 1986. COBRA allows for the continuation of employer based healthcare benefits at group rates after voluntary or involuntary job termination or reduction in hours of the covered employee. Spouses and dependent children who were covered under the affected employee are eligible for benefits as well.
Some of the unemployed have found it difficult to afford COBRA however, because they are responsible for paying the entire premium themselves and no longer have the benefit of an employer subsidy.
As part of the economic stimulus package signed by President Obama, a premium reduction for COBRA insurance is now available to qualifying employees. Under this plan, people who lost their jobs between September 1, 2008 and December 31, 2009 will only be responsible for 35% of the normal premiums that they would pay for COBRA coverage up to nine months. When an unemployed person receives notice of COBRA eligibility from their former employer, information about the subsidy and enrollment materials will be included.
Medicaid
During this recession many unemployed people find themselves out of work for months or even a year or more. By this point, they have exhausted their unemployment benefits as well as COBRA eligibility and may find themselves eligible for government funded healthcare known as Medicaid.
While Medicaid is federally funded, it is administered by individual states and each state has its own guidelines for eligibility. All states must fund certain key groups, which include categorically needy, medically needy, and certain special groups.
Categorically needy individuals include those eligible to receive Aid to Families with Dependent Children (AFDC), pregnant women and children under age 6 with a family income at or below 133% of the Federal poverty level, children ages 6-19 with families at or below the poverty level, and individuals who receive Supplemental Security Income (SSI). Medically needy individuals are those with special medical needs who would otherwise not qualify for Medicaid because of having too much income and/or resources, such as savings. Not all states have a medically needy program, however.
Individuals interested in applying for Medicaid should contact their local state agencies or visit government websites such as GovBenefits or BenefitsCheckUp where they can fill out a survey to determine what assistance they may be eligible for.
Corporate Assistance
Some corporations have announced new programs designed to assist the newly unemployed in meeting their healthcare needs.
Pfizer, the world’s largest pharmaceutical company, recently rolled out a program that will provide 70 of its most commonly prescribed drugs for free to Americans who have lost their jobs since January 1, 2009. To be eligible, individuals must have been taking the drugs for three months or more prior to losing their jobs. Individuals can enroll now by calling a toll-free number, (866) 706-2400 and beginning on July 1, 2009, they will be able to apply online at PfizerHelpfulAnswers.
Walgreens, the drugstore chain, has a program called the Take Care Recovery Plan. Through this program, individuals who have lost a job after March 31, 2009 can receive free healthcare services at Take Care Clinics located in select Walgreens stores. To qualify, individuals must be eligible for unemployment benefits and cannot have any other health insurance benefits. More information about this program, including a downloadable application, can be found at Takecarehealth.
References:
U.S. Department of Labor
Centers for Medicare and Medicaid Services
The Associated Press, May 15, 2009
Walgreen's Take Care Health website
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