Preserving health insurance when you’re out of work

(AP) — QUESTION: I just lost my job. What are the best options for preserving some form of health insurance?

ANSWER: Don’t confuse “best” with “affordable.” One of the first lessons many unemployed people learn is how expensive health insurance really can be.

If you’re lucky, you can switch to coverage from the job of a spouse or family member. For most people, though, the best option lies with coverage provided under the Consolidated Omnibus Budget Reconciliation Act, or COBRA.

Employee-sponsored coverage generally ends when a job does, although some people may get a few extra weeks because their company paid premiums through the end of a month, said Cheryl Fish-Parcham, deputy director of health policy at Families USA, a nonprofit organization that advocates for affordable health care.

COBRA allows people to continue the plan they had at work after that coverage ends. The former employee must make a decision within two months of leaving the job, and he or she will pay a hefty price to keep the coverage going……read more here