Professional Freedom Tax Service - We won't file until you smile!

Recent Posts

IRS investigating Liberty Tax
6 Tax Red Flags That Can Get You Audited
Teach Your Kids About Money (They'll Thank You Later)
Police warn of IRS scams during tax season
Consultant's Corner: Irs Schedule C Audit..


Filing a late tax return
Freedom Talk
General questions
Self Employed Individuals
powered by

Tax Service Blog

A Quick Guide to Health Insurance for the Newly Unemployed

Ed Note:When you lose a job, you lose more than just a paycheck. You also lose any employer-paid health insurance benefits. Fortunately, you have lots of options for keeping or replacing your current health insurance policy.

Getting laid off will make you feel bad enough, but realizing that you now have to figure out what to do about your health insurance can fill you with absolute dread. While we can’t get you a new job, we can help you sort out the options you have when you lose employer-paid health insurance.

As long as your employer has 20 or more workers, you can keep the health insurance coverage you got from your job for up to 18 months thanks to COBRA. The catch? You have to pay for it — and the average employer-paid family health insurance policy costs about $1,400 a month.

Fortunately, you get 60 days to decide whether you want to continue the policy and then another 45 days to pay your first premium.

Since you have two months to decide, don’t say yes or no to COBRA right away. Instead, work the system to your advantage. If you have significant medical bills during the 60-day window, you can sign up at any point during those 60 days and get retroactive coverage.

Meanwhile, ask Human Resources for a list of all the health insurance plans your company offers. If your former employer offers a lower-cost policy, you may be able to switch into it if you end up unemployed for more than 60 days.

Also ask if your employer-provided coverage will go through the end of the month. If it does, get your prescriptions refilled and doctor visits in before you lose coverage.

The Health Insurance Marketplace
During the 60-day COBRA window, check out your other options, starting with the Health Insurance Marketplace which is an online source of information about state and federal health care exchanges and coverage options.

Filling out the online Marketplace forms can be tedious.
Nevertheless, at this website you'll find out:
  • What you’d pay for health insurance plans offered in your state
  • How much, if any, premium tax credit you’ll get
  • If you or your children qualify for free or low-cost health insurance coverage
Avoid the temptation of going with the lowest monthly premium. Check out all the costs of the plans, including co-pays, deductibles and the total amount you’d have to pay if you rack up high medical bills.

Long-Term Unemployment
In the current economy, about one-third of jobless workers remain unemployed for more than six months. If you know you can’t afford COBRA coverage that long, you may need to move to a lower-cost marketplace insurance policy within 60 days of losing your job.

There are enrollment windows for the marketplace policies. In 2014, the open-enrollment period ends March 31. The 2015 enrollment window is Nov. 15, 2014 to Jan. 15, 2015. If you lose your job or your income changes, you can enroll even if you’re outside the enrollment window. However, your ability to enroll outside the enrollment period lasts only for 60 days — starting on the date you lost your job or your income changed.

As Income Drops, Health Insurance Choices Grow
Medicaid covers low-income Americans and people with disabilities. Some states have expanded Medicare coverage to individuals with income above the federal poverty line so you should check if your state is among them. The Children’s Health Insurance Program covers children and sometimes pregnant women.

Options When You Can’t Afford Coverage
Don’t like the options you’re seeing? Here are some other sources to try:
  • Younger than 26? You can get on your parents’ policy.
  • Belong to a trade or professional association? See if it offers members health insurance plans.
  • Have a chronic condition? Seek care via a clinical trial.
  • Look for a local free clinic.
  • If you’re within three months of being 65 or older, you can sign up just for Medicare and apply for retirement benefits later.

Tax Penalties for the Uninsured
Being without health insurance could cost you at tax time. The Affordable Care Act penalizes Americans who have no health coverage. For 2014, the penalty is 1 percent of your annual income or $95, whichever is more. You’ll also pay a $47.50 penalty for each uninsured child, up to a family maximum of $285. The penalties can be a bit complicated to decipher, so read up on the specifics and check out the exact equation.

21 Comments to A Quick Guide to Health Insurance for the Newly Unemployed:

Comments RSS
canes for sale on Wednesday, May 28, 2014 2:20 AM
Blogger’s brilliant Efforts are really appreciable. Anyone can easily understand the thoughts. Also I like the conclusions made on this topic which is really very informative.
Reply to comment

strona www on Sunday, March 22, 2015 1:32 AM
will appreciate the potential due to a floor sections -- are easy to install Placement of our interiors in numerous spots you can find a problem, because
Reply to comment

long term care insurance on Monday, May 04, 2015 6:19 AM
Wonderful post I have been waiting health insurance and its financial planning. Nice work. Thanx.
Reply to comment

Equity Stock Tips Provider on Friday, July 17, 2015 2:54 AM
If you have significant medical bills during the 60-day window, you can sign up at any point during those 60 days and get retroactive coverage.
Reply to comment

Stock Future Tips on Tuesday, July 28, 2015 5:13 AM
i m daily visitor of your blog & watch out your all post.I visited multiple websites but didn't find new content like this post..Yes!finally i read different news which i don't know,thanks
Reply to comment

aumaan on Wednesday, May 09, 2018 10:50 AM
Amaizing post
Reply to comment

olymptrade on Tuesday, May 22, 2018 4:54 PM
It was a decent post to be sure. I completely delighted in understanding it in my lunch time. Will definitely come and visit this blog all the more frequently. Much obliged for sharing.
Reply to comment

Ed on Thursday, August 16, 2018 11:47 PM
Reply to comment

Dissertation writing services on Sunday, September 16, 2018 11:19 PM
It is superb content I thought and even I was searching similar this subject articles for knowing about it. And I truly enjoyed to read plus collected a tremendous information about it.
Reply to comment

johnsmith on Monday, November 19, 2018 1:39 AM
It is an useful website. I like the content which you share about the tax service. All the blogs and the information which you share is very well. I surely share this post about the quick guide to health insurance with others. Thanks for sharing this all. Keep sharing. sale best quality of trolley wheels
Reply to comment

xbox Code generator on Monday, April 29, 2019 7:48 AM
In the event that you can finish every one of the three, at that point you can expect great Prize cash like Xbox Gift Cards to buy distinctive amusement beauty care products.
Reply to comment

IT Recycling on Tuesday, May 07, 2019 9:01 PM
This blog is so nice to me. I will keep on coming here again and again. Visit my link as well..
Reply to comment

The Florence Residences on Wednesday, May 08, 2019 8:15 PM
Great survey, I'm sure you're getting a great response.C
Reply to comment

bester masternode on Wednesday, May 08, 2019 8:48 PM
NPCcoin bietet, was Bitcoin nicht kann. Wir bieten Benutzern absolute Privatsphäre durch 100% anonyme Transaktionen. Während zuvor beschrieben wurde, dass die Blockchain absolut anonym war, hat sich dies heute geändert. Protokolle wie Bitcoin sind für jeden Benutzer, die Regierung usw. vollständig öffentlich und steuerbar. NPC basiert auf PIVX und bleibt absolut anonym. Daher können die Besitzer des NPC die Transaktionen im Explorer der Blockkette nicht verstehen und verstehen, da es keinen nachvollziehbaren Zahlungsablauf gibt und keine Rückschlüsse auf den Zahlungspflichtigen.
Reply to comment

like no instagram on Friday, May 10, 2019 2:50 AM
I appreciated your work very thanks
Reply to comment

tour packages of switzerland on Saturday, May 11, 2019 8:13 PM
Great survey, I'm sure you're getting a great response.
Reply to comment

SDSD on Tuesday, May 14, 2019 9:31 AM
Great survey, I'm sure you're getting a great response. Marketing For Chiropractors
Reply to comment

free weight loss trials on Thursday, May 16, 2019 2:26 AM
Forskolin Maximum Strength Forskohlii Extract for Weight Loss. Diet Pills & Belly Buster Supplement. Premium Appetite Suppressant, Metabolism Booster, Carb Blocker & Fat Burner for Women and Men.Check Our Website
Reply to comment

Test Bank for Introduction to the Practice of Statistics 9th Edition by Moore on Thursday, May 16, 2019 7:18 AM
i really appriciate your quality content.
Reply to comment

Test Bank for Cultural Anthropology 7th Edition by Robbins on Thursday, May 16, 2019 9:06 AM
i really appriciate your quality content.
Reply to comment

soviet ushanka on Friday, May 17, 2019 2:21 PM
It's fantastically an astonishing and key piece of data. I'm in exceptional spirits that you in a general sense offered this puzzling data to us
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment
Website Builder provided by  Vistaprint