Understand your health coverage options when you leave an employer's group health plan, and how to prepare for the transition to Medicare or Medicaid.
Group health plans let organizations offer health insurance to their employees, covering both the workers and their families. Employers, or unions, buy and manage the benefit plan, but the plan they select and its internal costs can depend on the size of the organization and the insurance company they buy through. Those costs can eventually filter down to the employee and shape both how they're covered and what they pay.
Different group health plans can provide varying kinds of coverage and carry different costs. Whatever that coverage or those costs turn out to be, other options are available to people once they leave. Such options might include Medicare or Medicaid, depending on the individual's situation.
A variety of situations can prompt someone to leave their group health plan, such as retiring, being diagnosed with a disability, or having their hours cut to fewer than 30 per week. Either way, Americans who are enrolled in a group health plan—or weighing whether to enroll—should understand the health insurance options open to them in case something happens and they need to leave it.
Take these factors into account:
Being prepared matters in case you want to—or have to—pick a different plan. If the potential costs are more than you can afford, ask us whether you qualify for financial assistance.
Some employees can leave their group health plan whenever they choose, while others must wait for their Open Enrollment period to drop it and sign up for a new one. Employees who work fewer than 30 hours a week yet are still offered coverage through a group plan may discover options that are more affordable or better suited to them on the Marketplace. In that case, they should be able to leave their plan at any point in the year and enroll in a different one.
For those who are retiring or have a disability and are otherwise leaving the group health plan, ending the employment should be enough to close out the plan. In any scenario, employers should be able to shed light on the possible consequences of leaving their plan.
Leaving a group plan isn't always simple, especially when you're unsure of your other options. Let Quottes help. We provide unbiased advice and excellent service to people who are about to move onto Medicare. Call 941-894-6460 to begin charting a path that fits your health insurance needs!
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