Health Insurance and Lapses

The transition period from one job to another can be a bit difficult especially if you have an existing health insurance policy with your former employer. But if you know the law, there is nothing to worry about. You see, according to the COBRA law, you can keep your existing health insurance within an 18-month period after leaving your job. However, you will need to pay high premiums. To some, this may not be the best option because there are lots of less expensive health insurance policies out there; so the decision is yours.

If you have a pre-existing condition and you're a new subscriber, you will be subject to a twelve months waiting period. If you don't want to wait for another year, you can opt for portability coverage. For individuals with continuous coverage (twelve months before the new coverage), you can receive credit if you have a pre-existing condition. In this case, you will no longer go through the waiting period. Here is another example. If you have 6 months continuous coverage, the waiting period will be cut down to only 6 months.

There should be no lapses so that you can take advantage of the so called ‘continuous coverage'. Lapse occurs when you're unable to pay within 62 days. If you have lapses in your previous health insurance policy, you will surely suffer the consequences. You see, when you have lapses, you will need to follow the 12-month waiting period. People with high blood pressures will not be covered within the waiting period. They will be required to shoulder all the medical expenses associated with the high blood pressure.

If you can afford what is under the COBRA law, you can go for it; at least, you will get continued coverage for the next 18 months. For the less fortunate, it's time to consider getting a health insurance policy that is cheaper and more affordable. You can get individual plans that meet your coverage needs. You can talk to an insurance agent in your area so that you can make an informed decision. You need to explain to the agent your current situation and that you're having problems because you're in between jobs. If you think that changing jobs is best for your life, you should not forget about your health insurance. You must plan your future carefully and just in case you want to resign from your current job, you need to ensure that there are no lapses so that you don't have to suffer the waiting period.