Job loss is not a foreign idea to a lot of people in California these days. With the uncertainty of today’s economy, a lot of businesses are deciding to close shop or to downsize and let some of their people go. As thus, a lot of people out there have found themselves cut off from their jobs and the benefits that go with these jobs.

Health care insurance is one of the benefits that will be missed when one loses a job. It is always reassuring to know that in case you or someone in your family gets sick, you can go to a hospital and get the proper care and treatment needed. People think that they lose their medical insurance in California if they lose their jobs.

But did you know that this does not have to be true? Even if you lose your job, you can still choose to retain your medical insurance in California. This is a benefit that is covered under federal law known as Consolidated Omnibus Budget Reconciliation Act or COBRA.

Under COBRA, you have the right to retain the health insurance you enrolled in with your employer before getting terminated or laid off. The premium is to be 100% paid for by you unless you were involuntarily terminated. If so, based on the COBRA stimulus that was passed by President Barack Obama stating that the government will subsidize 65% of your COBRA premiums for up to 9 months. If you have dependents enrolled with the policy, they can still make use of the health benefits as well.

The purpose of COBRA is to make sure that workers are still protected in medical emergencies even as they are in the process of looking for another health care policy to replace the one they had in their previous jobs. COBRA is further augmented by HIPAA, or the Health Insurance Portability and Affordability Act. Under HIPAA, your insurance provider cannot deny you coverage as long as you were enrolled in a group insurance policy in the last 63 days.

If previously you have been paying only a part of it and the other part is shouldered by your employer, when you are let go from your old job, you will have to be responsible for the entire cost of your health benefit. After all, your old employer is no longer obligated to pay for part of your group health insurance since you no longer work for them.

Nonetheless, all this assures you that you will are still able to have medical insurance in California despite the fact that you lost your job with your previous employer. If you need more information on COBRA and HIPAA and how these laws protect you, feel free to give us a call at 888-202-9441 or email us at admin@ezhealthinsuranceca.com.

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