Getting Health Insurance on Your Own
You have some special options if your COBRA coverage is ending and you have preexisting conditions that make it difficult for you to get health insurance.
Since I lost my job nearly 18 months ago, my health insurance has been covered through the COBRA program. Now my COBRA eligibility is about to end, and I still don’t have a job with benefits. I have some health problems, so I don’t think I can qualify for a policy on my own. Is there any chance that Congress will extend COBRA eligibility beyond 18 months? Or should I wait for the new high-risk pools to open?
Even though thousands of people are nearing the end of their COBRA coverage , Congress is unlikely to extend eligibility beyond 18 months for people who lose their job. But you do have several alternatives. Despite your health problems, you may qualify for an individual policy if your condition is well managed. To get price quotes from several insurers in your area, contact eHealthInsurance.com (call 800-977-8860 to discuss your health situation rather than requesting an online quote), or find a health-insurance agent in your area at www.nahu.org. An agent can help you gather letters from your doctors and other key records that could strengthen your case and help you qualify for coverage.
If you have major health problems, however, you might be rejected for coverage. But because you’re coming off COBRA, you have access to some special health-insurance options. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) allows people who exhaust their COBRA eligibility to buy certain policies regardless of their health condition as long as they don’t have a gap in coverage longer than 63 days.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
HIPAA coverage, which varies from state to state, doesn’t come cheap. Some states limit HIPAA policies to 145% of the cost of a standard health-insurance policy, but others permit insurers to charge up to 300% of the standard cost. In some states, all insurers must offer a HIPAA plan to eligible applicants regardless of preexisting conditions; in other states, one insurer provides all HIPAA coverage. And some states provide coverage by letting HIPAA-eligible people into their high-risk pool without a waiting period. For details about your state’s rules, go to www.coverageforall.org, or contact your state insurance department (you can find links to the state departments at www.naic.org).
Don’t wait for the new high-risk pools. The health-care-reform law specifies that you must be uninsured for six months to qualify for one. If you have a health condition, it could be dangerous to go that long without health insurance. Instead, start the HIPAA application process at least a month before your COBRA eligibility expires so that you don’t end up with a gap in coverage.
And whether you have a HIPAA policy or you qualify for an individual plan, you may be eligible for some assistance in paying health-insurance premiums. Twenty states have Health Insurance Premium Payment (HIPP) programs, which help low-income people with medical conditions pay private health-insurance premiums. Go to www.coverageforall.org for more information about your state’s rules.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
5 Stocks to Buy for a Trump Presidency
The race for the White House is heating up and these five stocks are set to benefit if Donald Trump claims victory.
By Will Ashworth Published
-
6 Target-Date Funds to Buy For Your Retirement
These six target-date funds are good set-it-and-forget-it options that are a staple of retirement plans.
By Nellie S. Huang Published
-
Credit Report Error? They All Matter
credit & debt Don't dismiss a minor error. It could be the sign of something more serious.
By Kimberly Lankford Published
-
Insurance for a Learning Driver
insurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
By Kimberly Lankford Published
-
529 Plans Aren’t Just for Kids
529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
By Kimberly Lankford Published
-
When to Transfer Ownership of a Custodial Account
savings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
By Kimberly Lankford Published
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
By Kimberly Lankford Published
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
By Kimberly Lankford Published
-
What Travel Insurance Covers When Planes Are Grounded
Travel Your travel insurance might help with some costs if your trip was delayed because of the recent grounding of Boeing 737 Max planes.
By Kimberly Lankford Published
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
By Kimberly Lankford Published