What to Do if You Lose Your Health Insurance

An average day in a hospital costs about $2,000. The typical cholesterol-lowering drug can cost about $100 a month. It's no wonder that we value our health insurance so highly.

However, losing your health insurance is a real possibility. Many people lose insurance because of a job layoff, their employer drops health benefits completely or they retire early. Others become uninsured when they cannot afford the insurance premiums that their employer requires them to pay, or because of a divorce or the death of a spouse. If you lose your health insurance and you do not qualify for Medicaid or are not yet 65 and eligible for Medicare, there are ways to get temporary insurance or needed medical services and prescriptions.

*COBRA. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows workers covered by an employer's group health insurance plan to continue to purchase that coverage for up to 18 months, at their own expense, if they have been laid off, taken voluntary leave or had their hours reduced to the point where they are no longer eligible for benefits. You may purchase that insurance for anyone in your family who was covered before you lost the insurance. Family members of an insured employee who dies also can purchase coverage under COBRA.

Important: COBRA only applies to companies with 20 or more employees. It does not apply if your former employer goes completely out of business. And it can be expensive. A typical employer-sponsored family health insurance plan, which includes hospital, physician, dental and prescription drug coverage, can easily cost up to $12,000 annually.

*Hospital coverage for the uninsured. Under both state and federal laws, you cannot be turned away from a hospital emergency room if you are uninsured. And if you require more than just emergency room care, you cannot be denied admission to the hospital. Last year, hospitals provided more than $25 billion care to people who were unable to pay their bills whether they were insured or not. In addition, many hospitals run free or low-cost clinics that can be used to help monitor chronic conditions, such as diabetes, asthma or heart disease.

*Free or low-cost prescription medications. More than 475 public and private assistance programs, including those offered by more than 150 drug companies, provide free or low cost prescription drugs to qualified patients who lack prescription medication coverage. To find out about these programs - and which you qualify for - consult the Partnership for Prescription Assistance (888-477-2669 ).

*Negotiate with your doctor. Losing your health insurance does not necessarily mean you cannot see the doctors you have always used. Most will work out reduced fees or extended payment arrangements for you and your family. But it's up to you to ask.