How Coronavirus Affects a Health Insurance Policy?
There have been several economic and pandemic crises before. During earlier instances, the buying of affordable health insurance policy was not so easy. However, the Congress and some states have recently taken steps to allow ordinary citizens a coverage. The Affordable Care Act is incredibly flexible under these circumstances and can be used to cover healthcare for Coronavirus.
Consult the following guide to determine what circumstances afford you which health insurance policy;
Keeping the Health or Life Insurance Policy Regardless of Losing a Job
You are allowed to keep your health insurance policy for up to 18 months after leaving a job. But you must be willing to pay the total amount of premium. This will include the amount you originally used to pay, plus the amount your employer contributed. The same condition applies to life insurance policy.
However, this kind of coverage is relatively more expensive than what you can buy from Obamacare marketplaces. Those who have an acute or chronic condition may find this option more desirable. It will allow them to keep seeing the same doctors.
Health Insurance Plan in Coronavirus for Extremely Poor
You most likely qualify for federal health insurance policy in 36 States. The health insurance in this instance is Medicaid. Since Obamacare has been introduced, most states allow their poor residents access to Medicaid. Poor refers to those who have lesser income than $1,400 per month. You can avail this option easily at Healthcare.gov.
Medicaid health insurance policy has no or very low premiums or co-payments. It also has fewer doctors in coverage than other forms of insurance. If your monthly income is low and yearly income is higher than minimum threshold, you can choose to buy Obamacare. You should buy a plan with maximum subsidies.
Plan Changes in Obamacare pertaining to changes in Income
Subsidies offered in Obamacare are usually calculated at a year’s beginning. It is calculated based on income. If the threshold of income changes, you can alter the plan. You must provide the documents as evidence for income changes, such as termination letter or recent paycheck. The sum will be balanced at year’s end when paying taxes. If you miscalculated in subsidies, it can be rectified later.
Signing Up for Brand New Health Insurance in Coronavirus
Normally, an individual can only signup for insurance once a year. Exceptions are made for a major incidence, such as job loss, divorce, death of family member etc. However, the rules are being loosened by some states and employers, due to Coronavirus Pandemic. There are 12 States which are allowing residents to signup for Obamacare right now regardless of their previous status. These States are;
- New York
- Rhode Island
- District of Columbia
Many employers are employing same method for delayed Health Insurance Policy. You can check with your company’s HR department for more details.
Changing a Short-Term Health Insurance Plan into a more Comprehensive one
The Short-term or limited-duration plans may not cover Coronavirus testing and treatment through Medicaid or Obamacare. If you wish to upgrade your existing plans, then your options are similar to people with no health insurance policy. If there is a Special Enrollment Period in your State, you must sign up with Obamacare as soon as possible. Your employer may also offer you the same option.
However, you cannot qualify for special enrollment in absence of relaxation of laws in your state. Or you can only do so if you have had a life-changing event, like a divorce or loss of job.