One of the harsh realities of an economic downturn or recession as has occurred over the past few years is the inevitable job loss. When you lose a job, you lose more than just a paycheck in many cases. For many people, losing a job means losing access to medical insurance. This can be extremely troubling, and can make just getting through life extremely difficult.

COBRA is the federal law that requires insurance companies to offer the same group medical insurance coverage to employees after they leave a company for a certain amount of time. When you have COBRA insurance, you have to pay the full premium costs which can be extremely costly depending on the type of coverage and the overall group insurance plan. Unfortunately, medical insurance companies are only required to offer COBRA coverage for a certain amount of time.

COBRA is a little more affordable today than it has been in the past, thanks to a certain government program. For example, last February’s economic stimulus package provides a subsidy of 65 percent for the COBRA premiums for workers laid off between September 1, 2008 and the end of 2009. For 18 months after being laid off, workers can pay for just 35 percent of the cost of their COBRA premiums and the federal government will pay the rest.

Eventually, you will run out of eligibility for COBRA coverage. When you do, there are some things you’ll need to consider if you’re still not employed or if you’re employed in a situation where medical insurance is not provided for you or your family. Here are some things to remember:

• Don’t get rid of COBRA until you’ve got another source of coverage lined up. Make sure you don’t have a lapse in coverage between COBRA and your new source of medical insurance. Keep in mind that you can search for private medical insurance while you’re covered by COBRA without any penalty.
• Look into income-based state-run programs. Medicaid is there for children and parents in families that are at a certain income level. If you haven’t yet found employment and don’t have a reliable source of income, this may unfortunately be your best bet.
• Consider buying different medical insurance coverage for different family members. Your children, for example, may qualify for the SCHIP program, which provides federal money to cover insurance for families who don’t qualify for Medicaid but also cannot afford to buy private medical insurance.
• Consider a part-time job. Many companies now offer medical insurance to their part-time employees. This can often be less expensive than COBRA.
• Buy a short-term plan if you’ll soon be eligible for Medicare, or if you know you’ll be returning to work soon.