How to Keep Healthcare Coverage After Company Layoffs

Many employees are unaware of when their healthcare coverage will end after being laid off. Currently, the coronavirus pandemic is causing the reduction of businesses in virtually all sectors. More and more employees are being told each morning that they are being laid off due to their employer downsizing.

Did you get laid off due to the coronavirus pandemic or any other reason? If you worked for an employer with 20 or more employees, the Consolidated Omnibus Budget Reconciliation Act (COBRA) will provide you with the ability to choose to continue your healthcare coverage for up to 36 months.

This option is called continuation coverage and allows qualifying employees to choose to continue coverage under their healthcare plan as an alternative to their healthcare coverage expiring due to job loss. You should know that you become responsible for paying the full monthly premium on a continued coverage healthcare plan, though. However, many people would rather pay for their own healthcare insurance than have no coverage at all, which would make them fully accountable for medical bills in case they get sick or get hurt in an accident.

Total Closures May Disqualify COBRA Options

When an employer has closed down permanently or has declared bankruptcy, your options may be more limited. Typically, COBRA is reserved for when the company that laid off the employee is still operating in some capacity. If your employer had to close down shop for good because of the pandemic’s economic impact, then getting COBRA benefits might not be possible.

Whether you’ve been laid off, or your employer is now permanently closed, understanding your options is crucial to plan your next steps. Chung & Ignacio, LLP in Rancho Cucamonga can help you figure out what sort of healthcare options you can still use. Please call (909) 726-7112 if you live in the greater Los Angeles metropolitan area and need our insight and assistance. (We are still accepting new clients during the COVID-19 pandemic by shifting the majority of our work to online and remote methods, like video teleconferencing to talk with our clients as their cases progress.)