Free Insurance Quote Low Income Insurance There are many obstacles to overcome if you are a low income individual or a member of a low income family. Obtaining health insurance is one of the biggest problems facing individuals and families who live near or even below the poverty line. There are many causes of people being uninsured including: being a single parent, having a disability, working only part-time, working for an employer that does not offer health insurance or being unemployed. Low income insurance is available for many individuals and families. Men and women who have reached at least 65 years of age are usually eligible for Medicare benefits. Individuals who are retired often are considered to be low income and do need health insurance. Medicare benefits are also available for many people who receive Social Security disability benefits. Medicare benefits can be a lifeline for disabled individuals with high medical expenses and a low income. Each state offers Medicaid for individuals and family who meet specified guidelines. Medicaid was designed to provide low income insurance for families and even some individuals who would not otherwise have insurance. Medicaid is particularly helpful for low income families and for pregnant women with a low income and few resources. Some states offer other low income insurance options for people who earn too much money to receive Medicaid but who would still have difficulty obtaining traditional health insurance. Low income insurance is also provided for most children who are not insured throughout the United States. Each state has a health insurance plan for children. This form of insurance is a low income insurance that is ideal for children of families earning income that exceeds the cutoff for Medicaid benefits. Some states have extended their health insurance programs to even offer health insurance to families with higher incomes if they have no other way to insure their children. Families and individuals who need low income insurance can contact their local assistance office. County assistance offices do not just offer welfare benefits. They also help to administer many of the low income insurance options for citizens in their local area. A social worker will work with families and individuals to help them identify the low income insurance options for which they might qualify.
Government Measures to Help With Health Insurance
Changes to COBRA and the State Children's Health Insurance Program can provide valuable assistance to those recently unemployed.
The rising unemployment rate is causing not just job loss but also the loss of valuable health insurance coverage for many people. In response, the federal government has enacted new legislation to help with COBRA coverage as well as state aid to families with children.
Changes to COBRA
COBRA stands for the Consolidated Omnibus Reconciliation Act of 1986. Under COBRA, if you worked for a company that had more than 20 employees, then you are able to continue on the group health insurance plan for as much as 18 months. The downside of COBRA is that it can be quite expensive. In most states, recipients report that COBRA payments account for more than 75% of their unemployment benefit. However, under the recently passed Economic Stimulus Package, you could be eligible for assistance with 65% of your COBRA premium.
To qualify for the program you must have lost your job between September 1, 2008 and December 31, 2009. Your income must be less than $125,000 for an individual and less than $250,000 a year for a family. If you did not take advantage of COBRA initially, you can still sign up for it. If you did sign up for COBRA coverage, you won't get any money back for the premiums you have already paid, but you will be eligible for assistance from the point after the law has taken effect. Under the new law you will pay 35% of the premium, and the government pays the other 65%. Your assistance could continue for as much as nine months.
State Children's Health Insurance Program
Another measure the federal government has taken recently to help people with health insurance coverage is to expand the State Children's Health Insurance Program or SCHIP. The law will provide $32 billion to the program over the next five years and expand coverage to from 7 to 11 million children. SCHIP is designed to provide health care coverage for children up to age 19 and pregnant women, in families whose income is low, but not low enough to qualify for Medicaid. A portion of the funding will come from an increase in the tax on cigarettes.
Under SCHIP, the federal government provides the states with matching funds to provide health care for families with children. To qualify, families could earn only up to 200% of the poverty level. Under the new law, families can earn up to 300% of the poverty level and still qualify for SCHIP. Each state has set up their program differently, so programs can vary from state to state.
If you find yourself out of a job and out of health insurance, two recent measures by the federal government may provide some assistance. The first are changes to the COBRA program in which the government could pick up to 65% of the cost of your health insurance premium. The other is the expansion of the State Children's Health Insurance Program. Either of these options could provide short-term assistance with health insurance coverage for the recently unemployed.
About the Author:
Kevin Kielty lives in North Carolina and writes articles on health insurance. If you are looking for rate quotes on health insurance in North Carolina, visit BCBSNC, also known as Blue Cross and Blue Shield of North Carolina.
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