Dental Insurance Articles

Finding Temporary Dental Insurance After Losing Your Job

2011-11-20

Losing a job is a difficult experience, especially in an economy as volatile as this one. When a person loses his or her job, the first thing he or she usually thinks about is the emotional component. Losing a job brings out many emotions, from anger to shame, and it can be difficult to tell loved ones. The next issue people think about after they lose their jobs is the loss of income, and then finally, insurance. While finding a new job and navigating joblessness can be difficult, there are options for individuals to extend dental insurance so they don't face a lapse in coverage.

First, policyholders can take advantage of HIPAA benefits to extend their insurance policies a few months after losing their jobs. HIPAA benefits do not allow a policyholder to extend his or her group dental insurance policy indefinitely, but for those who quickly find another job, HIPAA may be all they need. Unfortunately, in this economy, it is much more likely that an individual who loses his job will be out of work for more than a few months. Thus, greater measures are needed to avoid a lapse in coverage.

Another temporary dental insurance option is COBRA. COBRA coverage allows individuals to extend their group health insurance packages beyond what is allowed under HIPAA regulations for a longer temporary insurance solution. However, COBRA is expensive, though it is not often as expensive as getting a private dental policy.

Finally, a consumer who is unemployed for a significantly longer period of time or who finds a new job that does not offer insurance benefits will want to check into a private dental insurance policy. Private policies are available on a temporary basis, so it is possible to sign up for one and not be committed to a long-term relationship with the plan. Private temporary dental insurance is an excellent strategy that consumers can use to avoid a lapse in coverage when their COBRA has run out.

Instead of suffering the negative effects of a lapse in coverage, individuals can and should choose one of the temporary insurance options above. A lapse in coverage can mean higher insurance rates or even denial of insurance once a person finds a new job. This is because an insurance company can argue that a condition being treated under another policy as a preexisting condition and the new insurance company may not see itself as obligated to treat it. Temporary insurance policies are not always affordable, especially when a policyholder has just lost his or her job, but they nonetheless can help individuals save a great deal of money on medical bills in the long run.