Can You Drop Health Insurance If You’re Furloughed?

Understanding Life Events and Health Insurance

When you experience a significant change in your life, such as losing your job or having a baby, you may be eligible for a “qualifying life event.” This allows you to make changes to your health insurance coverage, such as adding or dropping dependents, or switching plans.

Furloughs and Health Insurance

A furlough is a temporary period of unpaid leave from work. While furloughed, you may still be considered an employee, but you are not receiving any income. This can have implications for your health insurance coverage.

Dropping Health Insurance During a Furlough

Whether you can drop your health insurance during a furlough depends on the specific terms of your plan and the rules in your state. Generally, losing your income can be considered a qualifying life event that allows you to drop your coverage.

Employer’s Perspective

Your employer may have specific policies regarding health insurance coverage during furloughs. They may require you to continue paying your premiums, or they may have a policy that allows you to drop your coverage. It’s important to contact your employer’s benefits department or human resources department to clarify their policies.

Other Options

If you are unable to drop your health insurance during a furlough, you may have other options to explore:

COBRA: The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to continue your employer-sponsored health insurance for a limited time after losing your job. However, you will have to pay the full cost of the premiums.
Medicaid: Medicaid is a low-income health insurance program offered by the government. You may be eligible for Medicaid if your income is below a certain threshold.
State-Sponsored Health Insurance: Some states offer their own health insurance programs for low-income residents.

Seek Professional Help

If you are unsure about your health insurance options during a furlough, it’s recommended to contact a licensed insurance agent or an attorney. They can provide personalized advice based on your specific situation and help you navigate the legal and administrative complexities involved.