Lose your job due to the coronavirus? Here are your health care options in California
As job losses surge and more and more people lose their employer-sponsored health insurance, consumers are finding it harder to get quick, timely help finding or paying for coverage.
“We’ve seen surges before, but even the 2008 Great Recession wasn’t this sudden,” said Anthony Wright, executive director of Health Access, California’s health advocacy coalition.
Laid-off workers can keep their health insurance coverage, but it’s likely to cost more. They can seek help to obtain other coverage, and the state has an extensive network ready to help.
One big reason for optimism: Hundreds of thousands of state residents will get subsidized coverage through Covered California, the state’s marketplace where people can buy private health plans.
Millions more may be able to get insurance through Medi-Cal, the joint state-federal program for lower income consumers.
During the Great Recession, Medi-Cal enrollment exploded from 6 million to 8 million state residents, and so, said Wright, “Medi-Cal has some experience in dealing with this kind of increase.”
California has seen 2.3 million people seek unemployment benefits in the last three weeks. Last year, the state had 2.8 million people uninsured..
If the national unemployment rate reaches 17.5 percent this month, which many economic models see as possible, an estimated 2.5 million state residents could lose their employer-sponsored coverage, said a study released this week by Health Management Associates.
That could only mean more frustration for the laid off.
“The current health system is not equipped to handle the barrage of the newly uninsured,” said Cheryl Fish-Parcham, Director of Access Initiatives at Families USA, a national, non-partisan consumer advocacy organization.
Here are some of the key questions readers have been asking, and answers from experts at the Kaiser Family Foundation, Families USA, the U.S. Labor Department and Wright’s group:
I lost my job. How do I keep my insurance?
One option is COBRA, a federal law that allows you to keep your coverage through your employer for at least 18 months and perhaps longer. COBRA stands for Consolidated Omnibus Budget Reconciliation Act
But there’s a catch. Employers no longer have to pay part of your premium, which means you’ll pay more.
So why would I even want to keep that coverage?
Here’s why, according to the Kaiser Family Foundation: “Though the premium cost is high, some people take COBRA because it offers other advantages, especially for ongoing health needs. COBRA coverage is seamless with no gaps, you keep access to the same network of doctors and hospitals, and don’t have to restart your deductible mid-year.”
Families USA notes that older people, if they don’t qualify for premium tax credits or Medi-Cal, may find using COBRA more valuable than younger people. That’s because age is a factor in how premiums are priced, and it could be more difficult for an older person to find a similar premium elsewhere. In addition, they are more likely to have a medical history with their current provider and would not want to start over.
Can my family continue to qualify for coverage under COBRA with coverage they had?
Yes.
Do I have to use COBRA? And if not, what’s my best alternative?
You can buy coverage through the health care marketplace. In California, visit the Covered California web site, where you can shop for coverage and see if you qualify for affordability assistance to purchase private plans, or even for free or low-cost Medi-Cal coverage.
In many cases, it’ll probably be less expensive and you can tailor it to your individual needs.
My income’s about to plunge. Is there any help I can get to pay the premiums?
Says Health Access California: “The costs may be lower than you thought as the Affordable Care Act’s federal financial assistance is augmented by new state subsidies that are now available to reduce premiums for Californians who make up $75,000 per year, or up to $150,000 per year for a family of four.”
The aid can be substantial. Your premiums are tagged to a percentage of your income, and the average member gets a subsidy of $472 a month to afford coverage. Even at the higher incomes, a family of four with an income of between $104,000 and $150,600 could get about $120 a month in help.
How do I know if I qualify?
One easy way is to use this calculator: https://www.coveredca.com/see-if-you-qualify-for-financial-help/
Is it too late to sign up?
No. Covered California has announced that anyone uninsured and eligible to enroll through the program can sign up through June 30.
Are there limits as to how many people can sign up?
No. “We want to get as many people covered as possible to ensure they have access to the health care they need,” said Peter Lee, executive director of Covered California.
Anyone uninsured and eligible to enroll in health care coverage through Covered California can sign up through the end of June.
I want to talk to someone and learn more. What do I do?
Covered California offers several options, including having a certified enroller call you or you can call Covered California at (800) 300-1506. They’re open Monday through Friday, 8 a.m. to 6 p.m., but a recording notes that there may be longer than normal wait times.
Keep in mind that people are working at home or remotely, and wait times have been substantial, so see what you can do online, or seek help from your directory of county agencies, community enrollers, and local brokers and agents, Wright advised.
Suppose I have trouble affording Covered California’s offerings?
There’s Medi-Cal. It’s a program for people with low incomes. Enrollment is always available.
How do I apply?
In person, on line or by mail. And be patient. Here’s the relevant information: https://www.dhcs.ca.gov/services/medi-cal/Pages/ApplyforMedi-Cal.aspx
How can I reach someone in person?
Medi-Cal provides a county by county listing of places where you can contact experts.
How much will Medi-Cal premiums be?
Consumers pay little or no premium, depending on income. For most Californians with incomes under $17,200, or a family of four under $35,500, Medi-Cal does not charge a premium.
Generally, families with higher income can buy coverage in Covered California, but Medi-Cal also covers children in higher incomes at $13/month per child and a maximum of $39 per family.
This story was originally published April 10, 2020 at 12:20 PM with the headline "Lose your job due to the coronavirus? Here are your health care options in California."
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