We already had a problem with health insurance in the US. I have not seen recent statistics, but even before the economy turned sour, almost 50 million Americans lacked health insurance. I am sure that those figures are only growing. People are losing their jobs and job related health insurance. Companies are slashing costs, and so they are cutting back on medical benefits, even for people who are still employed. If you lost your job, or if you lost your job related medical plan, how can you cope?

COBRA – This is actually a federal law that helps some former employees extend their group health plan benefits. Not every company is required to offer a COBRA extension, and COBRA extensions come with a hefty price tag. The reason that people say that it is expensive is because employers do not have to contribute towards premiums any longer as they did when the employees were active. So the former employee must pay the entire premium, and many of them are surprised by the cost. They had no idea how much money their old employer contributed. So while COBRA may be the best option because it extends group health insurance, many people cannot afford it and some employers do not have to offer it.

Short Term Health Insurance – Temporary major medical plans can be purchased from major health insurers. You can usually purchase coverage for 1 to 12 months. If you are layed off, but plan to return to work (and group benefits) within a year, this can be a great option. If you are not sure you will return to group benefits within a year, this may still be a good choice because many policies can be converted into regular individual health insurance plans.

Individual Medical Insurance – These are private plans which a consumer purchases on themselves, or on their family. Of course, the individual will need to pay for the entire premium. However, in the case of young and healthy families the premiums will probably be fairly low since the company gets to individually underwrite every applicant. They can offer discounts for a healthy lifestyle or higher rates for people with some health issues. They can even decline to insure other people for serious health conditions. So while healthy people can find low rates, those with health issues will pay more, or they may even be declined for coverage.

Note that group plans must conform to federal rules.These rules mean that all employees must be accepted if they are healthy or not. So if you do have a pre-existing condition always make sure you can be accepted by an individual health plan before you cancel any group benefits! If you are pregnant, or if you might get pregnant, you will probably have a hard time finding comprehensive maternity benefits on the individual market too.

Government Low Income Health Programs – The state and county governments offer a variety of health plans for low income individuals. For unemployed people, Medicaid and CHIPS may help. However, you must be within the income guidelines set by your state, and for some programs, you must have depleted most of your savings. The guidelines for children’s coverage are usually more lax than those for adults. Some children’s programs may also cover pregnant women too.

High Risk State Insurance Program – If you have a health condition and cannot find private insurance, you may qualify for the state high risk plan. This varies by states, but you should be able to find information online, or you can contact your state insurance department or a qualified health insurance agent to help you.