Tips to Retain Your Company’s Health Insurance Even After Laid-off

Having health Insurance coverage is important for every individual. A company offers health insurance to its employees. This is a benefit provided to employees by their employers through Group Health Insurance. To continue their medical financial coverage after being laid off the employee is either expected to get new insurance or consider options like porting.  However, another option that is not commonly known by the customers is that they might still get the coverage of the group health insurance for some time after being let go if it is stated in their policy.

This benefit keeps the financial burden off their shoulders till they start earning again. Having fewer financial problems during the time of unemployment especially related to one's health is crucial.[1]

Strategies to Retain a Company's Health Insurance After Lay-Off

These few tips and strategies are ways an employee can retain their company’s health insurance after being laid off:- 

1. Porting the Group Health Insurance Plan 

To get the benefits of the Company Health Insurance, porting that group plan to an individual plan is possible. This will provide the employee with the same benefits but with some changes depending on the company and their plans. 

Terms and conditions in every company and plan vary which will determine the changes in your policy while porting. If there are any concerns or issues faced, the customer can connect with an InsuranceDekho advisor representative to resolve them.[1]

2. Review the Policy Terms and Conditions

Understanding your policy and reviewing the terms and conditions given under your plan and its coverage is critical. While reviewing the policy you can understand the coverage better, if you can access the benefits under the policy even after being laid off or not. If you can utilise the benefits for a specific period even after being laid off, then for how long? This information will help you make the right decision on further steps.

A policy may or may not include coverage for employees after they are let go from the company. Being laid off is a common but sudden move that will give you less time to plan your future especially related to your health insurance as that requires planning and research.[1]

3. Negotiate With Your Employer

When an employee is laid off, the company usually extends the period of coverage on their health insurance in the severance package. This may not be the case with all companies, so negotiations are a possible option to continue the health insurance when being let go. Convincing your manager to extend the period of the Company Health Insurance with the same benefits can be beneficial. [1]

4. Update it to a Personal Health Insurance Plan

Some Health Insurance Companies offer the benefit of updating your plan from company health insurance to personal health insurance (individual or family floater). The conversion is only possible in the same company. For example, If you have a Group Health Insurance of company X, you can choose an individual or family-floater plan of company X in case of being laid off. [1]

5. Opt for Government Schemes

If the Health Insurance provided by the Employer is not sufficient or not providing proper assistance then an employee can choose Health Insurance provided by the government at an affordable amount. A few government schemes available to the residents of India are Ayushman Bharat Yojana, Pradhan Mantri Suraksha Bima Yojana, Aam Aadmi Bima Yojana, Central Government Health Scheme, etc., these schemes provide health insurance to customers at an affordable amount reducing their financial burden.  [1][2]

Conclusion

Layoffs can be stressful and a financial burden on employees, especially sudden layoffs. It can create problems for an individual and health insurance which was covered by their employers is now an additional issue. Being unemployed and having your expenses increased can create tension and stress for an individual so having the option where they can still retain their company’s Health Insurance till they get a new employment or income source is helpful, financially and mentally. Some employers may give you the coverage of health insurance for some time as a severance package but some may not. Having other options that fit your criteria is important.

FAQs

Ques 1. Can an employee get the coverage of a Company Health Insurance after they are laid off?

Ans:- Yes, an employee can get coverage of a company health insurance after being laid off. However, it will depend on the terms and conditions of the policy. Every plan and company has different benefits under their health insurance.

An employee can also choose a personal health insurance plan after being laid off if the company health insurance is denied or they are not satisfied with their current company plan.

Ques 2. Is it compulsory for an individual to forgo their health insurance policy if their company is offering them mandatory health insurance?

Ans:- You can still keep your health insurance intact while also getting coverage of the company's health insurance. 

Ques 3. How to determine whether a company's health insurance is terminated after being laid off?

Ans:- Understanding the policy and its terms and conditions is a must while buying health insurance or getting a company’s health insurance. The policy is a document that has every detail and coverage about your plan. The policy will help you know when it will be terminated and how it might happen.

Ques 4. Is Health Insurance mandatory for Pvt. Ltd. Company?

Ans:- The government of India, the Ministry of Home Affairs, and IRDAI have made it compulsory for all organisations across India to have Corporate Health Insurance. This will provide health insurance to both employers and employees. 

Ques 5. Is Company Health Insurance enough?

Ans:- Corporate health insurance has a few advantages like no waiting period, Reduced premium cost, no pre-medical check-ups, etc. However, the coverage is not sufficient for medical treatments in India. The amount offered during claims is less than individual or family-floater-based plans. 

Reference Links

[1]https://www.insurancedekho.com/health-insurance/news/tips-to-retain-your-company-s-health-insurance-even-after-laid-off-10081

[2]https://www.policybazaar.com/health-insurance/govt-scheme/