Health Insurance: Know your options

Many families are having to make tough decisions now. First to be paid out of the budget are necessities like food, utilities, mortgage and car payment. Sometimes health insurance disappears as families can’t afford it. Sometimes the insurance goes away because of a job loss.

In either case, you might have options to find affordable insurance. If you’ve just left an employer that provided health insurance, ask about signing up for COBRA, which is a continuation of the group health insurance through your employer. Generally you can be eligible for up to 18 months of coverage, unless there is a qualifying event that can stretch the time to 36 months.

COBRA is more expensive than your regular insurance was, but it’s much less expensive than paying for the medical expenses you might incur. For more information on COBRA, check the U.S. Department of Labor site ( www.dol.gov).

If you have an ongoing need for prescription drugs, contact the drug manufacturer about discounted or free prescriptions.Call your state’s department of insurance. Ask what others in the same situation are doing.Visit your local insurance agents and see what they have to offer for individual policies. They’ll know up-to-the-minute information on policies that are available. Keep in mind that the agent is going to get a commission on whatever policies you buy. Check online for ratings of the companies he or she recommends. Go to www.insurance.freeadvice.com for reviews, and A.M. Best ( www.ambest.com) for ratings information. Once you get a policy, read every word.

Check eHealth Insurance (ehealthinsurance.com) for quotes and information. If you’re paying for COBRA, check into COBRA alternatives on this site. Unfortunately, they don’t have information for all states, but for the ones that are covered, an A.M. Best rating is shown.

Look to your alliances. If you’re a member of a group such as AARP or a fraternity, or are a college graduate, check for group policies based on your membership. If you’re self-employed, check trade-specific organizations that pertain to your field, or Small Business Service Bureau and membership benefits in the National Association for the Self-Employed.