For some, being laid off from a job and in turn losing Group Health Insurance benefits can hurt as much as not receiving a paycheck. If this has happened to you or someone you know it’s important to understand all of the options that are available to you in order to maintain coverage.

In 1986 The United States Congress passed The Consolidated Omnibus Budget Reconciliation Act (better known as COBRA). In essence this law gives workers and their covered dependents the right to continue their current group coverage for a limited time period due to certain life circumstances such as job loss (either voluntary or involuntary), divorce, a reduction in hours causing a change in eligibility, or over-age dependent status among other things.

If you are covered by an employer’s Group Health, Dental or Vision plan, and you’re laid off or choose to leave your position, by law you will be offered COBRA continuation. The cost of coverage varies from 102% of the premium amount if your employer is only subject to Federal COBRA but can be higher if your state has its own COBRA laws. For example, here in California if your employer is subject to California COBRA laws the rate can be as high as 110% of the premium amount.

For a lot of people who are losing coverage and have little or no money coming in, paying 102% or more in order to continue their Health Insurance coverage is just not an option. Congress and the President have tried to address this issue with a limited subsidy provision as part of The American Recovery and Reinvestment Act of 2009. While helpful if you qualify for the subsidy, once it has been exhausted you are still responsible for the full COBRA premium.

So you are finally taking that dream vacation to Mexico, South America, or Europe.  Or maybe you are sending your child away for a semester abroad.  You have spent several months planning the flights, accommodations, and activities.  You even purchased the trip cancelation insurance from your travel agent that protects you in case one of your flights gets canceled.

But wait!  Before you lock up the house and head off to the airport take a moment to consider what would happen if you or a family member were to have an accident or get severally ill while on your vacation.  How would you deal with the emergency?

If you are covered by a traditional health insurance policy, either through your employer or an individual policy obtained on your own, you might have some limited foreign travel benefits.  However, it’s a good idea to check with your insurance company before flying the friendly skies so you understand what is and what is not covered.  Most might be surprised what you find out.

Typically a traditional health insurance policy only provides limited foreign travel benefits.  The limited coverage that may exist usually only applies to true emergency care.  Without a supplemental Foreign Health Travel Insurance policy, if you have an emergency situation while traveling outside of the U.S., you take on the following responsibilities by yourself: