Many people get health insurance coverage via public or employer programs. However, you should buy private coverage if you don't have access to such programs. Being without health insurance may seem cheap in the short term, but it is expensive in the long term. Below are some of the circumstances that mean you should shop for individual coverage.
You Are Unemployed or Self-Employed
According to entrepreneur.com, except for Hawaii, state law doesn't require employers to provide health insurance to their employees. However, most employers offer health insurance as part of employee benefit programs.
Under these schemes, the employer pays a portion of each employee's health insurance premiums, and the employee pays the rest. Thus, you must pay the entire premiums if you are unemployed. Similarly, self-employed persons must pay their entire premiums since they are their own employers.
Note that you don't have to buy health insurance immediately you lose your job. Through the Consolidated Omnibus Budget Reconciliation Act (COBRA), you can remain on your employer's insurance plan for 18 months after losing your job. However, COBRA is relatively expensive, and you may be better off with private insurance.
You Are a Part-Time Employee
Employers typically provide benefits to full-time employees. Since health insurance is an employee benefit, you will have to buy your own coverage if you are a part-time employee. Employee benefits cost employers money. If you work part-time, your employer might reason that your limited input (to their business) doesn't warrant health insurance coverage.
You Are Over 26
The law allows you to remain on your parents' health insurance plan until you reach age 26. The dependency coverage applies even if you are:
Once you turn 26, you are no longer a dependent and must purchase individual coverage.
You Don't Qualify For Medicare or Medicaid
The U.S. government offers health insurance via two main programs. One of the programs is Medicare, which provides coverage to people over 65 and those living with a disability. The other is Medicaid, which provides coverage to low-income Americans.
Medicare and Medicaid have their own eligibility requirements. For example, Medicare doesn't depend on income levels, while Medicaid depends on your income level. Also, the federal government and state governments jointly manage Medicaid. Thus, you might be ineligible for either of these programs. In such a case, you must purchase private health insurance.
Many people find the health insurance industry complicated. Consult a health insurance agent to guide you and help you buy appropriate coverage at appropriate rates.
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