How A Job Change Can Impact Your Health Insurance

Are you considering a job change or thinking about becoming self-employed? If so, it’s essential to consider the impact this change could have on your health insurance, including your coverage and costs.

Here’s what you need to know about how a job change could impact your NC health insurance.

Health Plans of NC, Kelly Quinn
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How a job change can impact your health insurance coverage

Regardless of why you’re thinking about changing jobs, it’s essential to be aware of how this could impact your medical health care costs and health insurance coverage. For example, suppose you work for an employer who currently sponsors your health insurance coverage. In that case, you may need to establish independent insurance coverage, which means additional out-of-pocket costs. Here are some options to be aware of when considering North Carolina health insurance:

  • COBRA: If you’re leaving a job with company-sponsored health insurance coverage, you can usually continue coverage after you cease employment through COBRA (Consolidated Omnibus Budget Reconciliation Act) or continuation coverage.

  • Your spouse’s health insurance: If you’re less than 26 years old or married to someone with company-sponsored health insurance coverage, having a family member add you to their insurance plan could be a good option. Depending on how their employer establishes coverage of spouses and family members, this can be the cheapest health insurance option. It allows you to maintain coverage once your company-sponsored health insurance ends.

  • Health Insurance Marketplace coverage with a subsidy: You’ll find many health insurance plans available via the Health Insurance Marketplace. If you fall within 100 and 400% of the federal poverty limit, you may qualify for a subsidy for your insurance coverage. However, make sure you understand how to access your subsidy before purchasing insurance.

  • Private Insurance (no subsidy): Along with plans available to you on the Health Insurance Marketplace, many private insurance plans are also available. Be aware that there is no governmental subsidy for these plans.

  • Short-term plans: If you opt for a short-term insurance plan, be aware they often don’t cover pre-existing medical conditions. You may also be refused coverage due to your health or pre-existing medical care needs.

  • Medicare: If you’re over 65, it may be time to consider obtaining health insurance coverage under Medicare.

     

    Our specialized agents can help with Medicare plans North Carolina.

The impact of Covid-19 on switching jobs

Since the Covid-19 pandemic began, the Pew Research Center has gathered data to uncover how it’s impacted people all over America, including residents of North Carolina. Their research has found positive and negative changes in people’s lives due to Covid-19. Their study highlights significant changes to Americans’ personal relationships, how people choose to spend their free time, physical and mental health, employment, and financial circumstances.

One area of focus is work-life balance. Over 20% of Americans found that the pandemic negatively affected their work, although 13% stated the pandemic had created positive changes at work. As a result, many people have found value in working remotely, impacting their quality of life, and providing a greater work-life balance. 

If you’re considering a job change, it’s essential to consider the implications any work change can have on health insurance benefits and the cost of your medical coverage. Getting professional guidance by chatting with a licensed health insurance agent in North Carolina can help.

How the pandemic is changing the way we work

The pandemic has accelerated changes in work trends throughout North Carolina and the rest of the country. During lockdowns, the necessity of remote work meant approximately 25% more workers were looking to switch their occupations than previously anticipated. Many people who found themselves furloughed or unemployed took the opportunity to reconsider what they wanted from their careers. Many people also realized how unbalanced their life was. 

When the pandemic first began in 2020, working from home was necessary. However, research is now showing the reasons people currently work from home have changed considerably since the beginning of the pandemic. Today, more people are working remotely by choice, with 61% stating they’re choosing to work remotely instead of being forced to due to office closures. The numbers were almost the opposite at the beginning of the pandemic, with only 36% choosing to work from home. In fact, the number of self-employed workers has rebounded strongly in the last 12 months, now back to 2019 levels. 

Choosing the right coverage when changing jobs

Selecting the right health insurance plan NC is important to ensure you’re adequately covered and that the plan suits your needs and budget. Let’s take a look at some of the options:

Health Insurance Marketplace

In 2021, the American Rescue Plan Act increased and extended tax credit subsidies to cover individuals with higher income levels. So if you weren’t eligible for a health insurance subsidy in the past, you may now be eligible for a subsidy through the Health Insurance Marketplace.

In 2021, the American Rescue Plan Act increased and extended tax credit subsidies to cover individuals with higher income levels. So if you weren’t eligible for a health insurance subsidy in the past, you may now be eligible for a subsidy through the Health Insurance Marketplace.

Your spouse’s plan

If you’re offered health insurance coverage through your spouse’s plan, it’s unlikely you’ll meet the requirements for the Marketplace subsidy. If you can access coverage on your spouse’s plan and COBRA coverage from the job you’re leaving, it’s crucial to consider a few things. First, compare the coverage and cost of these plans, along with coverage available through private insurance plans. Compare the cost of premiums, copays, and the differences in the levels of deductibles and out-of-pocket maximums.

Short-term health insurance plans

If you’re young and healthy, enrolling in a short-term health insurance plan (gap coverage) could be a good option if you’re temporarily uninsured. For example, short-term plans are a good choice if you’ve switched jobs and are waiting to become eligible under your new company’s health insurance plan. These plans are also a good choice if you’re approaching your 65th birthday, meaning you’re almost eligible for Medicare.

Be aware that short-term insurance coverage isn’t required to provide minimum essential benefits required by the Affordable Care Act (ACT). In addition, pre-existing medical conditions are usually not covered. If you have any history of medical concerns, you may not be able to get this type of plan.

Medicare

If you are eligible for Medicare and aren’t enrolled, now is an excellent time to discuss your options with your current benefits manager or a licensed Medicare agent. As Medicare only covers about 80% of your medical care costs, you may also consider adding additional coverage from a private company. Extra coverage can help you manage your health care costs. Our NC health insurance agents can help provide guidance on the right coverage to meet your needs.

Arranging the right level of coverage

Our local team of experienced agents can help if you need health insurance NC. We specialize in helping with NC self-employed health insurance plans, because there’s already enough to organize when establishing your own business. We also provide a range of Medicare plans in North Carolina and can help you find the right coverage based on your budget and health requirements. Contact us today to discover more or compare plans now. SEE ALSO: What Freelancers Need To Know About Health Insurance

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