Millions of Americans have recently been faced with the task of finding their own inexpensive health care plans for themselves and their families after they have lost their jobs. Already in 2009 alone, estimated that 7 million Americans who have lost work due to the recession will have to pay COBRA health insurance premiums in order to maintain their health insurance plans.
The good news for those millions of recently unemployed persons is that the new Government Act-American recovery and Reinvestment Act (ARRA)-which was put into place in many countries to help these individuals and their families of ensure pay for COBRA health care. However, the ARRA and COBRA provides only temporary financial exemption and, for many, the programmes are to end. Health savings accounts may be feasible solutions to health care for such workers.
Working with COBRA
COBRA is a program that allows employees who lost their job through no fault of their own to continue with the same health care plans, which they were assisted by their employers. COBRA program is temporary and, while the workers are able to maintain their same health insurance plans, employees have to pay more premiums for their health insurance plans, COBRA than they paid, while they were employed.
Historically, COBRA premiums were difficult for laid-off workers afford on their own. Yet because many workers were able to quickly find reemployment after they are laid off many employees chose to use the option as a temporary solution and COBRA health insurance when they were between the tasks.
However, with the current difficult economic conditions, it was not possible for many workers to find reemployment, which means that the obligation to pay high premiums COBRA for an extended period of time-or optional completely make health insurance. Therefore, when COBRA programs are short-term solution to help workers obtain affective through loss of temporary employment, are not capable of providing an affordable or long-term health insurance.
American recovery and Reinvestment Act
In order to help workers more easily afford COBRA (and retain health care coverage) of the Federal Government instated American recovery and Reinvestment Act (ARRA), which has been adopted by some States.
Under the ARRA for workers who lost their jobs during the recession are only required to pay 35 percent of their COBRA health insurance premiums, while the Federal Government pays the remaining 65 percent. This Act is adopted on the basis of a State by State and was an effective short-term solution for millions of Americans. However, COBRA coverage State lasts from six to only nine months, depending on the individual. The Federal COBRA coverage lasts for a maximum of 18 months, in most cases.
For many Americans are currently enrolled in COBRA COBRA health insurance programs and/or ARRA financial support is about to expire. The Americans, who are still unemployed are now challenged to find affordable health care plans for themselves and their families. This is particularly important for them to enroll in the new health insurance program before their COBRA benefits expire, so as to be able to maintain health care coverage for the entire time.
Health savings account options
For people who have lost their job health savings account is generally the solution very affordable and effective health insurance. Health savings accounts are used by people in all industries and financial economy situation, including owners of small businesses, companies, the unemployed, families financial-, savvy employees and more.
Health savings account is similar to the IRA, including those set aside money into health savings account, which then can invest in a high proportion of suitable stocks, bonds, money markets and more. Money, that person shall treat health savings account and tax-free may increase. When a person must pay for the certification of expenditure related to health, he or she can withdraw money from a health savings account to pay for it without paying tax.
It is one of the many benefits of health savings account, that person can use funds from their accounts as they wish. However, if they pay money for expenditure related to health care, will pay taxes on the funds you withdraw it. When they leave the funds in their health savings accounts, money can grow completely tax-free for life.
In order to establish a health savings account, people need to open an account a qualifying high-deductible health insurance. Health savings accounts can be used by individuals and families. There is also the maximum annual contribution for the individual and family health savings accounts, which are subject to change each year.
Health savings accounts are not only affordable health insurance solutions for individuals who have accounts COBRA, which are about to expire, but they are also the perfect solution for many laid-off workers. For many people the health savings accounts are more affordable and financially plans smart solutions than COBRA health insurance. Individuals should talk with an adviser to insurance to find solutions the right insurance for themselves and their families.
By Wiley Long – President, HSA for America-the nation's leading independent insurance company specializing in individual and family HSA insurance plans that working with savings accounts, health.
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