Health Insurance Options for H1B Layoffs (COVID-19)

COVID-19 has taken the world by storm and has left a lot of devastation in its wake. Not only are there health concerns for everyone, but economic pressures have caused many to lose their jobs. 

H1B visa holders are no exception. Unfortunately, potential unemployment has a lot bigger impact on H1B visa holders than U.S. citizens. As an H1B visa holder, you aren’t eligible for certain unemployment benefits such as domestic health insurance offered by your State.

If you find yourself facing unemployment and a lost health insurance benefit, don’t worry. There are still H1B health insurance options available for you. Let’s take a look.

What is COVID-19? 

COVID-19 (also known as coronavirus) is a serious and highly contagious respiratory illness. The COVID-19 virus spreads from person to person mainly through respiratory droplets produced when a person coughs or sneezes. It is possible to contract COVID-19 by touching objects or surfaces that have the virus on it and then touching your mouth, nose, and possibly even eyes. 

There is a wide range of symptoms that are associated with COVID-19, making COVID-19 signs and symptoms “non-specific”. If you get the coronavirus, you can display any combination of the common symptoms or even display no symptoms at all.

Typical signs and symptoms of COVID-19 include: 

• Dry cough
• Shortness of breath
• Fever
• Fatigue
• Coughing up slime 
• Body chills
• Sore throat
• Headache
• Muscle or joint ache or pain

Other, less common, symptoms are:

• Diarrhea
• Nasal congestion
• Nausea or vomiting
• Coughing up of blood or blood-stained mucus
• Intensely red eyes, watery discharge from the eyes, swollen eyelids, and light sensitivity.

It is important to remember that you can have COVID-19 and be contagious without showing any symptoms of the virus. Signs and symptoms can take as long as 14 days to show. 

How COVID-19 is Affecting H1B Workers in the U.S.?

COVID-19 isn’t only a health problem. There are many other ways in which COVID-19 is affecting the U.S. and specifically H1B workers. One of the most significant areas that are impacted is the U.S. job market. 

Even though the U.S. is one of the strongest economies in the world, the coronavirus has still put enormous pressure on the U.S. economy. In these tough economic times, many businesses are shutting down and laying off their personnel. In April alone, more than 700,000 people have lost their jobs, and the U.S. unemployment rate has increased to 4.4%. 

These people haven’t only lost their jobs, but also all the benefits such as health insurance that go with it.

More than 10 million people have already applied for unemployment benefits offered by their States. As a foreign worker on an H1B visa, many of these benefits aren’t available to you. Unfortunately, most H1B visa holders are dependent on their employers to provide them with health insurance. As an H1B visa holder, you are not eligible for benefits such as COBRA Health Insurance, Medicaid, or ACA. These are only available to U.S. citizens.

So, what, then, are your options? Do you even have to worry about replacing your health insurance?

Why It’s Important to Have Health Insurance in the U.S.

Understandably you are under financial pressure, so paying for health insurance might not seem worth it right now. 

Even if the world is not in the middle of a health pandemic, having health insurance is essential. This is all the more true amid the COVID-19 pandemic.

Why is having health insurance so important, especially for H1B visa holders?

Firstly, medical costs are extremely expensive in the U.S. when compared to other countries. No matter where you are, an unplanned medical expense can cause trouble for your finances. 

If the unplanned medical expense happens in the U.S., you’ll probably get a bigger knock than you are thinking. Just breaking your leg can cost you up to $7,500. X-rays average at about $1,500, and the average medical cost per day for a medical emergency is $3,949. This doesn’t include lab tests (about $100 per test) or the actual hospital stay. Take a look at the detailed breakdown here.

The reality is, 60% of all bankruptcies are caused by medical expenses without insurance to cover it.

With medical insurance, you have financial protection if you are in a serious accident or get seriously ill. Not only will you be protected against very high unplanned costs, but you will be able to receive the medical attention you need without worrying about whether you can afford it. 

If you don’t have medical insurance, you might end up losing the savings you were planning to use to visit your family back home to medical fees. 

Fortunately, most employers provide health care as a benefit. If the COVID-19 crisis ends up costing you your job (and thereby your health benefits), however, it is all the more important to make sure you get your own cover as soon as possible. 

We know paying for something like health insurance while you don’t have a steady income can be tough. But think of it this way – if you don’t, you might end up not being able to afford the medical treatment you need. Or an unplanned medical expense can put even more financial pressure on your family. It’s just not worth it!

Health Insurance Options for H1B Visa Holders

Even if you lose your job and your employer-provided health insurance, you’re not stuck. You still have health insurance options as an H1B visa holder. 

Short-Term Health Insurance

Short term health insurance provides health insurance coverage for anything between 30 and 180 days. This might just be the gap you need to find a new job with new health insurance benefits. 

Short-term health insurance is more expensive than your standard health insurance options, but it still has the advantage of providing different plan options to suit different budgets. You will also have various options for your deductible, and you might have a copay option.

The great thing about short term health insurance is you can activate your plan very quickly. If you get laid off as an H1B visa holder, there is no reason to worry. You can activate your short-term health insurance plan the very next day. 

Safe Travels USA Comprehensive is an example of short-term health insurance you can consider.

Travel Medical Insurance

Travel medical insurance is a slightly cheaper option than short-term medical insurance. Travel medical insurance can provide coverage for anything between 5 to 364 days. Generally, travel medical insurance will cover any new medical condition as well as any therapy, diagnostic tests, hospital stays, and some medications.

Inbound USA Basic is an example of travel medical insurance available for H1B visa holders.

Conclusion

There is enough stress and worry going around with the COVID-19 crisis and the potential of you losing your job. There is no reason why you have to worry about your health insurance as well. Consider your health insurance options above and get the peace of mind your family needs in these tumultuous times.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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