Today's difficult economic times are not likely to measurably improve in the next year. And many of those who are lucky enough to still have jobs are worried about what the future may bring. The potential for losing a job is bad enough, but losing health care benefits that go along with it makes the situation even worse. For most people, there are a variety of options available when unemployment becomes a reality.



COBRA is the plan most have heard of. Since COBRA went into effect in 1986, millions of unemployed have been able to continue their health coverage for up to 18 months after the employment terminated. You will have to pay the entire premium, though, and this may cause your monthly insurance costs to go up if your employer was formerly paying part of it. But if you have pre-existing conditions, this still is an excellent option.

A second, less known about option is that of what is known as temporary health insurance. This insurance is specifically designed to insure you in between jobs or during lapses in health insurance. It is usually relatively reasonable to carry and can help cover you until you can pick up a more permanent health insurance policy. Many people find that this option is actually less expensive than their COBRA plan, since many large companies have good insurance plans and absorb a lot of the costs for their employees, there can be a significant change in your out of pocket expenses when you begin paying the premiums through COBRA.

There is a third option to consider, depending on your financial and family situations and the region of the country in which you live. That is Medicaid, or some sort of low cost insurance plan offered by your state. In order to meet the demands of a growing uninsured working population, many states are offering sliding scale insurance coverage for low to middle income families who do not have any insurance, and sometimes if you have kids, they may be eligible for free insurance through the state. Most of this information can be accessed by contacting the Social Services organization in your area. They should be able to tell you what if any health insurance programs you may be eligible for.

Knowing the facts about your options can make all the difference, and investigating the options in advance can not only save you money, but can also help keep your family insured through the tough times.