When you’re considering switching jobs, one of the factors that may weigh on your mind is how it will affect your health insurance. After all, medical care can be expensive, and access to affordable coverage can make a big difference in your overall financial picture. Here’s what you need to know about how health insurance works when switching jobs.
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#1: Your old employer’s coverage will end
If you’ve been receiving health insurance through your current employer, you’ll lose that coverage when you leave your job. In most cases, your coverage will end on your last day of work. This means that if you have any upcoming medical appointments or procedures, you’ll want to schedule them before you leave your job.
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#2: You have options for continuing your coverage
Depending on your situation, you may be able to continue your health insurance coverage after leaving your job. One option is COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act. This law allows you to stay on your employer’s health plan for up to 18 months after leaving your job, as long as you pay the full cost of the premiums yourself.
Another option is enrolling in a new health plan through the Affordable Care Act (ACA) marketplace. You may qualify for subsidies that can help lower your costs, depending on your income and family size. You have a 60-day window to enroll in a new ACA plan after losing your job-based coverage.
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#3: Your new employer may offer health insurance
When you start a new job, your new employer may offer health insurance as part of your benefits package. If this is the case, you’ll likely have a waiting period before you can enroll in the plan. This waiting period may range from a few weeks to a few months.
You’ll also want to carefully review the details of your new employer’s health plan to make sure it meets your needs. For example, you’ll want to check which doctors and hospitals are in the plan’s network, what your deductibles and co-payments will be, and what services are covered.
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#4: You may have a gap in coverage
If you’re not able to continue your old employer’s health insurance through COBRA or enroll in a new plan right away, you may have a gap in health insurance coverage. This means that you won’t have coverage for medical care during this time, unless you pay out of pocket.
To avoid a gap in coverage, it’s important to plan ahead and explore your options before leaving your job. If you’re eligible for COBRA, you’ll want to factor in the cost of premiums when deciding if it’s the best option for you. If you’re enrolling in a new ACA plan, you’ll want to make sure you understand the enrollment process and deadlines.
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#5: You can change plans during open enrollment
Once you’re enrolled in a health insurance plan through your new employer or the ACA marketplace, you’ll typically have to wait until the next open enrollment period to make changes to your coverage. Open enrollment usually occurs once a year and allows you to switch plans or make changes to your coverage.
There are some exceptions, however. For example, you may be able to make changes to your coverage outside of open enrollment if you experience a qualifying life event, such as getting married or having a baby.
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#6: Your health insurance costs may change
When you switch jobs and enroll in a new health insurance plan, your costs may change. Your premiums, deductibles, and co-payments may be different than what you were paying before. It’s important to carefully review your new plan’s details and calculate your expected costs so you can budget accordingly.
In addition, if you have ongoing medical needs or a chronic condition, you’ll want to make sure your new plan covers the treatments and medications you need. You may need to seek out a specialist or other provider who is covered by your new plan.
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#7: You have rights under the Affordable Care Act
Under the ACA, you have certain rights when it comes to health insurance coverage. For example, your health plan must cover certain preventive services without cost-sharing, such as annual checkups, mammograms, and colonoscopies. Your plan also can’t impose lifetime or annual dollar limits on essential health benefits.
In addition, if you have a pre-existing condition, your new plan can’t deny you coverage or charge you more because of your condition. This protection applies whether you’re enrolling in a new employer-sponsored plan or an ACA marketplace plan.
In conclusion, switching jobs can be a big change, and it’s important to understand how it will affect your health insurance coverage. By exploring your options and carefully reviewing your new plan’s details, you can make sure you have access to affordable medical care when you need it.
