The cost of health insurance in the United States continues to rise. Not having health insurance is often linked to bankruptcy and poorer health outcomes, including death. Even brief periods of no coverage can have significant impacts on a person's access to health care and his medical debt.
Health Insurance Gap
Many people in the United States receive their health insurance as a benefit from their job or through a parent or partner's job. Many jobs do not offer health insurance to employees immediately, waiting until they have been working for a set period of time, ranging from 30 days to a few months. Additionally, young people who receive coverage from a parent while enrolled in school may lose benefits once they graduate. This period of time between a former health insurance plan's coverage and a new plan is called a health insurance gap.
COBRA
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is one option available to fill a health insurance gap in some circumstances. COBRA "gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce and other life events" according to the Department of Labor. This coverage is paid for by the insured for up to 102 percent of the cost of the plan. COBRA is offered by employers with 20 or more employees.
Private Gap Coverage
Many insurance companies offer short-term health insurance to cover you during the gap period. These plans often require less screening and cost less than a regular health insurance plan. The services covered by these plans may be less than with traditional plans. Coverage may not include any preventive visits, eye doctor or dental exams. The purpose of these plans is essentially to cover emergency care and unexpected illness that could be financially devastating without insurance.
Medicaid
Individuals and families with little or no income may qualify for public insurance programs. Medicaid provides insurance to low-income individuals and families. Medicaid is funded by state and federal dollars. States administer the program and determine who is eligible, what is covered, and how much the insured must contribute to his care (if anything).
CHIP
Children's Health Insurance Program (CHIP) is for children and families who earn too much money to qualify for Medicaid but cannot afford private insurance. The program is run like Medicaid with federal and state dollars. States administer the programs and determine eligibility, coverage and contributions. Individual states may also offer additional programs for certain groups such as the disabled, pregnant women, etc.
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