Planning for Near-Term Medical Expenses
Losing your job and your health coverage is one thing. Knowing that you have medical expenses on the horizon, now without insurance, is another. If you have the misfortune of losing health coverage with a baby on the way, chronic conditions, or an upcoming needed surgery, we would recommend that you get COBRA or find another viable coverage option as outlined in Steps 1 and 2.
If you still are uninsured or underinsured and have looming healthcare expenses, there are a couple things you can do to help minimize the financial burden associated with them.
Even without COBRA, you probably have coverage through the end of the month.
Most health coverage runs on a month-by-month basis. That means that once your company has paid premiums for January, you are covered for all of January. It doesn't matter if you leave on January 1 or January 31. Always verify this information with the HR department at your old employer.
Don't Forget About Flexible Spending.
The money you contributed to your Flexible Spending Account, or FSA, is yours. Just because your job is gone doesn't mean those dollars vanished. If you were contributing to an FSA, that money is still yours to access until the balance is zero, or the plan year is completed. Work with the human resources department from your old employer to understand how to submit claims on your FSA when you are no longer employed. In most cases, you'll be able to work directly with the FSA administrator and bypass the HR office once initial contact has been made.
Communicate With Your Physician and Hospital.
Let's say you are six months pregnant and just lost your job and insurance. While we'd recommend COBRA in this case, there can be instances where it is not a viable option. Also, even with COBRA, the lack of a steady income can hinder your ability to meet medical financial obligations. Communicate with your physician and hospital staff about your situation, and allow them to help you plan for the financial expense. They get questions like this more often than you would think, and often have policies in place to help deal with your situation, including discount policies or payment plans. The medical community's first priority is to ensure you receive the care you need and can be an active participant in your healing - worrying about medical finances likely will hinder that. They can often help.
Ask for Payment Arrangements.
Most hospitals and physicians have the ability to set up a payment plan or discount your medical bill for cash payment. If you know that the next few months are going to be tight financially, you may want to suggest that you pay your bill off over the course of a year, rather than the typical 60 to 90 days that they will initially request.