Research Health-Care Options After Job Loss

QMy company has been laying off people, and I'm worried I may lose my job soon. If that happens, what will I be able to do about my health insurance?

AIf you lose or leave your job, you usually can continue coverage through your employer's plan for up to 18 months through a federal program called COBRA. You can't be rejected or charged more because of your health, but you may be flabbergasted by the price.

Your policy doesn't change when you make the switch, but the price jumps because you lose the employer subsidy. Employers generally pay about three-quarters of the cost of family health-insurance coverage. The average family plan costs $12,680 for the year, according to the Kaiser Family Foundation, but the average employee pays only $3,354 of the bill. Through COBRA, however, you'll have to pay the full price yourself.

Employers generally subsidize single coverage even more, with the average policy costing $4,704 for the year though employees pay only $731. Lose your job and switch to COBRA, and you could be stuck with the full bill.

If you're healthy and live in a state with a competitive health-insurance marketplace, you could find a much better deal. The average premium for people who bought individual health-insurance policies from eHealthInsurance.com, a national health-insurance marketplace, was just $158 per month for individual coverage ($1,896 per year) and $366 for family policies ($4,392) in 2007, according to a recent study.

You can get price quotes and compare policy details at eHealthInsurance.com, or you can find a local health-insurance agent through the National Association of Health Underwriters.

You can lower the cost of individual health insurance by increasing the deductible. And if your deductible is at least $1,100 for single coverage or $2,200 for a family plan in 2008, you can qualify for a health savings account, which lets you contribute tax-deductible money to an account that you can use tax-free for medical expenses in any year.

When comparing policies, look carefully at any exclusions or coverage limits. Some individual policies do not provide maternity coverage unless you buy an extra rider. Others limit coverage to a specific dollar amount on certain procedures or charge high co-payments. Compare premiums as well as potential out-of-pocket costs, and look for a policy that has a total coverage maximum of more than $1 million.