In addition to the health insurance considerations mentioned in my posting on February 26, 2009, the stimulus package offers considerable relief to those pursuing coverage under COBRA by reimbursing a percentage of premiums paid under COBRA for a set time period. The New York Times offers an excellent run down of these options, including a discussion of how health savings accounts can be used to your advantage if you opt for a plan with a high deductible. The article is available here:
http://www.nytimes.com/2009/02/28/health/policy/28patient.html?_r=5&8dpc
Saturday, February 28, 2009
Friday, February 27, 2009
Before the job search...
When I was first laid off, I wanted to throw my resume at every company, firm, and organization that I thought might hire me. I was seriously worried about whether or not I would be able to find work. For a few days, at least. Then, I began to think about how much volatility there was in the market and that, with the economic downturn and Obama only newly in office, that there might be a great deal more fluctuation, rendering any job that I took just as "safe" as the last.
Many people who have been laid off were working in their profession of choice, had found their calling, and to them, this likely does not apply. However, I thought that perhaps it was time to find something that I was a little more firmly rooted in, a career and profession that really spoke to me, rather than one I'd landed in without more recent serious consideration.
So, I did the counter-intuitive: I did nothing for a few days. I didn't apply for anything or make any sudden changes. I just sat with the change that was going on around me. Now, this was a true luxury, and I understand that many laid off Americans do not have the luxury of of time to consider the next career move or job. A paycheck is a paycheck and, without one, family members may not get fed and the house foreclosure may go through. If this is where you are, then these things are top priority and, of course, not to be discounted. However, even with a job search ongoing, it's important to ask ourselves why we are where we are as a society, as individuals, and more importantly, what we can do about it.
Take some time, whether it's five minutes, five days, five weeks, or five months, to reflect on what you want from this life, what you can offer those around you, and what you can do about it right now and in the near future. Reserving just that small amount of space and room in your life can change the direction you end up heading drastically.
Many people who have been laid off were working in their profession of choice, had found their calling, and to them, this likely does not apply. However, I thought that perhaps it was time to find something that I was a little more firmly rooted in, a career and profession that really spoke to me, rather than one I'd landed in without more recent serious consideration.
So, I did the counter-intuitive: I did nothing for a few days. I didn't apply for anything or make any sudden changes. I just sat with the change that was going on around me. Now, this was a true luxury, and I understand that many laid off Americans do not have the luxury of of time to consider the next career move or job. A paycheck is a paycheck and, without one, family members may not get fed and the house foreclosure may go through. If this is where you are, then these things are top priority and, of course, not to be discounted. However, even with a job search ongoing, it's important to ask ourselves why we are where we are as a society, as individuals, and more importantly, what we can do about it.
Take some time, whether it's five minutes, five days, five weeks, or five months, to reflect on what you want from this life, what you can offer those around you, and what you can do about it right now and in the near future. Reserving just that small amount of space and room in your life can change the direction you end up heading drastically.
Thursday, February 26, 2009
What about health insurance?
As the reality of being laid off set in, I realized that this meant not only no source of income, but no health insurance or retirement benefits. Having had a period with no health insurance coverage for several brief stints before college, I was not ready to go through this again. However, without comprehensive health care coverage coming up immediately, I was not sure how to finance health insurance coverage for myself with only unemployment insurance payments coming in.
For many Americans who are not fortunate enough to be receiving unemployment insurance, health insurance coverage does not make the cut in the list of top payment priorities as food, housing, and transport are often atop the list.
COBRA:
You may be able to seek coverage through your prior employer under COBRA, although you are responsible for paying your entire premium. Typically, because you are part of a group through your employer, this will usually be a larger amount than if you seek out an individual health insurance coverage plan. However, if you have pre-existing conditions or are required to maintain your existing coverage for other reasons, it may be worth paying the additional monthly premium. Note that some smaller employers are COBRA exempt and may not be required to offer you coverage under COBRA. In some instances, smaller employers may still be able to offer coverage by agreement with your health insurance provider; however, it depends upon the provider and the employer. It's best to have this conversation with your employer immediately, if possible. Some smaller employers do not understand the nuances of this area of law, so it may be up to you to learn the pros and cons and educate your former employer about them, though ideally you will not need to do this (though it never hurts to be educated about your rights and opportunities!).
Need-based health insurance:
Many states, such as Washington and Massachusetts, offer basic health insurance coverage for those who meet income and eligibility requirements. Often, and especially recently, there are waiting periods for coverage under these plans. Apply immediately after losing your job to get in line.
Additionally, some hospitals and medical centers offer financial assistance to those recently unemployed and/or below a certain income level. Inquire as soon as possible with your local hospital or medical center. Applications typically take several weeks to process and likely require a disclosure of your financial situation, including assets and liabilities, as well as proof of unemployment. Typically, this can lead to full payment of your medical expenses for a set period of time (usually three to six months, although it varies by institution).
Individual health insurance coverage:
Many online companies, such as eHealthInsurance (www.ehealthinsurance.com) offer great comparison packages between plans with varying coverage levels and deductibles. Ideally, you should apply and obtain a policy for which you have the entire deductible saved so that you can pay it in the event of a medical emergency. Apply immediately for coverage to avoid any gaps in coverage.
Catastrophic health insurance: worth the risk?
Catastrophic health insurance can be a good back-up, but this offers only minimal insurance for extreme cases of hospitalization, etc. and means that most of your healthcare expenses are out-of-pocket. It's a bit of a gamble because if you or a family member encounters a medical emergency demanding immediate attention, this can often be more expensive than if you paid a higher monthly insurance premium.
Watch out for pre-existing condition clauses:
Freeze-out periods for pre-existing conditions can be quite frustrating, often resulting in nine-month or more waiting periods for those who are not eligible for a waiver of these waiting periods. If you have continuous prior coverage, this may be waived. But, be proactive about requesting that your new provider waive the pre-existing condition clause.
Action plan:
1. Discuss COBRA eligibility and cost of coverage with former employer;
2. Determine health insurance needs, deductible you can pay, and possible monthly premium;
3. Apply for low-cost state health insurance;
4. Apply for individual health insurance plan, checking to be certain that you are not subject to a pre-existing condition clause and getting credit for prior coverage;
5. Follow up with insurance agent and insurance provider to be certain that application is received and approved in time for continuous coverage to occur.
For many Americans who are not fortunate enough to be receiving unemployment insurance, health insurance coverage does not make the cut in the list of top payment priorities as food, housing, and transport are often atop the list.
COBRA:
You may be able to seek coverage through your prior employer under COBRA, although you are responsible for paying your entire premium. Typically, because you are part of a group through your employer, this will usually be a larger amount than if you seek out an individual health insurance coverage plan. However, if you have pre-existing conditions or are required to maintain your existing coverage for other reasons, it may be worth paying the additional monthly premium. Note that some smaller employers are COBRA exempt and may not be required to offer you coverage under COBRA. In some instances, smaller employers may still be able to offer coverage by agreement with your health insurance provider; however, it depends upon the provider and the employer. It's best to have this conversation with your employer immediately, if possible. Some smaller employers do not understand the nuances of this area of law, so it may be up to you to learn the pros and cons and educate your former employer about them, though ideally you will not need to do this (though it never hurts to be educated about your rights and opportunities!).
Need-based health insurance:
Many states, such as Washington and Massachusetts, offer basic health insurance coverage for those who meet income and eligibility requirements. Often, and especially recently, there are waiting periods for coverage under these plans. Apply immediately after losing your job to get in line.
Additionally, some hospitals and medical centers offer financial assistance to those recently unemployed and/or below a certain income level. Inquire as soon as possible with your local hospital or medical center. Applications typically take several weeks to process and likely require a disclosure of your financial situation, including assets and liabilities, as well as proof of unemployment. Typically, this can lead to full payment of your medical expenses for a set period of time (usually three to six months, although it varies by institution).
Individual health insurance coverage:
Many online companies, such as eHealthInsurance (www.ehealthinsurance.com) offer great comparison packages between plans with varying coverage levels and deductibles. Ideally, you should apply and obtain a policy for which you have the entire deductible saved so that you can pay it in the event of a medical emergency. Apply immediately for coverage to avoid any gaps in coverage.
Catastrophic health insurance: worth the risk?
Catastrophic health insurance can be a good back-up, but this offers only minimal insurance for extreme cases of hospitalization, etc. and means that most of your healthcare expenses are out-of-pocket. It's a bit of a gamble because if you or a family member encounters a medical emergency demanding immediate attention, this can often be more expensive than if you paid a higher monthly insurance premium.
Watch out for pre-existing condition clauses:
Freeze-out periods for pre-existing conditions can be quite frustrating, often resulting in nine-month or more waiting periods for those who are not eligible for a waiver of these waiting periods. If you have continuous prior coverage, this may be waived. But, be proactive about requesting that your new provider waive the pre-existing condition clause.
Action plan:
1. Discuss COBRA eligibility and cost of coverage with former employer;
2. Determine health insurance needs, deductible you can pay, and possible monthly premium;
3. Apply for low-cost state health insurance;
4. Apply for individual health insurance plan, checking to be certain that you are not subject to a pre-existing condition clause and getting credit for prior coverage;
5. Follow up with insurance agent and insurance provider to be certain that application is received and approved in time for continuous coverage to occur.
Unemployment
First, I filed for unemployment immediately, even though I had several more days of work left. I wanted to make sure that my application got in as soon as possible and this ended up working well because there was a waiting week before any unemployment compensation could be received.
I struggled to find the right resources on what to do when laid off. Here's a list of state unemployment resources, listed alphabetically by state:
Alabama, joblink.alabama.gov/
Alaska, labor.state.ak.us/
Arizona, www.azdes.gov/esa/uibenefits/uibhome.asp
Arkansas, www.state.ar.us/esd/WorkersUnempBenefits/ADWS_Workerunempben.htm
California, www.edd.ca.gov/Unemployment/
Colorado, www.coworkforce.com/
Connecticut, www.ctdol.state.ct.us/progsupt/unemplt/unemployment.htm
Delaware, www.delawareworks.com/Unemployment/services/services.shtml
District of Columbia, does.dcnetworks.org/claimantservices/
Florida, www.floridajobs.org/Unemployment/index.html
Georgia, www.dol.state.ga.us/
Hawaii, hawaii.gov/labor/ui
Idaho, labor.idaho.gov
Illinois, www.ides.state.il.us
Indiana, www.in.gov/dwd/
Iowa, www.iowaworkforce.org/ui/
Kansas, www.uibenefits.dol.ks.gov/
Kentucky, oet.ky.gov/des/ui/ui.asp
Louisiana, www.laworks.net
Maine, www.maine.gov/labor/unemployment/benefits.html
Maryland, www.dllr.state.md.us/employment/unemployment.shtml
Massachusetts, mass.gov/eolwd
Michigan, www.michigan.gov/uia
Minnesota, www.uimn.org
Mississippi, mdes.ms.gov/
Missouri, www.ui.dolir.mo.gov/
Montana, uid.dli.mt.gov/
Nebraska, uiconnect.ne.gov/uiconnect/center.cfm
Nevada, detr.state.nv.us/uiben/uiben_uiben.htm
New Hampshire, claims.nhes.state.nh.us/weblogic/ready.jsp
New Jersey, www.njuifile.net/
New Mexico, www.uiclaims.state.nm.us/
New York, www.ui.labor.state.ny.us/
North Carolina, www.ncesc.com/
North Dakota, www.jobsnd.com/insurance/workers_apply.html
Ohio, unemployment.ohio.gov/unemployed_workers.html
Oklahoma, www.unemployment.state.ok.us/
Oregon, www.employment.oregon.gov/EMPLOY/UI/index.shtml
Pennsylvania, www.paclaims.state.pa.us/UCEN/Login.asp
Rhode Island, www.dlt.state.ri.us/
South Carolina, www.sc.gov/Portal/Category/EMPLOYMENT
South Dakota, dol.sd.gov/ui/uibenefits.aspx
Tennessee, www.tennesseeanytime.org/labor/
Texas, www.twc.state.tx.us/customers/jsemp/jsempsub22.html
Utah, jobs.utah.gov/ui/WebInitialClaims/Welcome.asp
Vermont, www.labor.vermont.gov/Unemployed/tabid/109/Default.aspx
Virginia, www.vec.virginia.gov/vecportal/unins/insunemp.cfm
Washington, www.esd.wa.gov/uibenefits/index.php
West Virginia, www.wvbep.org/bep/uc/
Wisconsin, www.ucclaim-wi.org/
Wyoming, wyui.doe.state.wy.us/
Consult with your state agency to determine the most efficient means for application. Usually, this can be done online. Due to the large number of unemployment claims currently being filed, phone lines are often, unfortunately, blocked to a frustrating degree.
I struggled to find the right resources on what to do when laid off. Here's a list of state unemployment resources, listed alphabetically by state:
Alabama, joblink.alabama.gov/
Alaska, labor.state.ak.us/
Arizona, www.azdes.gov/esa/uibenefits/uibhome.asp
Arkansas, www.state.ar.us/esd/WorkersUnempBenefits/ADWS_Workerunempben.htm
California, www.edd.ca.gov/Unemployment/
Colorado, www.coworkforce.com/
Connecticut, www.ctdol.state.ct.us/progsupt/unemplt/unemployment.htm
Delaware, www.delawareworks.com/Unemployment/services/services.shtml
District of Columbia, does.dcnetworks.org/claimantservices/
Florida, www.floridajobs.org/Unemployment/index.html
Georgia, www.dol.state.ga.us/
Hawaii, hawaii.gov/labor/ui
Idaho, labor.idaho.gov
Illinois, www.ides.state.il.us
Indiana, www.in.gov/dwd/
Iowa, www.iowaworkforce.org/ui/
Kansas, www.uibenefits.dol.ks.gov/
Kentucky, oet.ky.gov/des/ui/ui.asp
Louisiana, www.laworks.net
Maine, www.maine.gov/labor/unemployment/benefits.html
Maryland, www.dllr.state.md.us/employment/unemployment.shtml
Massachusetts, mass.gov/eolwd
Michigan, www.michigan.gov/uia
Minnesota, www.uimn.org
Mississippi, mdes.ms.gov/
Missouri, www.ui.dolir.mo.gov/
Montana, uid.dli.mt.gov/
Nebraska, uiconnect.ne.gov/uiconnect/center.cfm
Nevada, detr.state.nv.us/uiben/uiben_uiben.htm
New Hampshire, claims.nhes.state.nh.us/weblogic/ready.jsp
New Jersey, www.njuifile.net/
New Mexico, www.uiclaims.state.nm.us/
New York, www.ui.labor.state.ny.us/
North Carolina, www.ncesc.com/
North Dakota, www.jobsnd.com/insurance/workers_apply.html
Ohio, unemployment.ohio.gov/unemployed_workers.html
Oklahoma, www.unemployment.state.ok.us/
Oregon, www.employment.oregon.gov/EMPLOY/UI/index.shtml
Pennsylvania, www.paclaims.state.pa.us/UCEN/Login.asp
Rhode Island, www.dlt.state.ri.us/
South Carolina, www.sc.gov/Portal/Category/EMPLOYMENT
South Dakota, dol.sd.gov/ui/uibenefits.aspx
Tennessee, www.tennesseeanytime.org/labor/
Texas, www.twc.state.tx.us/customers/jsemp/jsempsub22.html
Utah, jobs.utah.gov/ui/WebInitialClaims/Welcome.asp
Vermont, www.labor.vermont.gov/Unemployed/tabid/109/Default.aspx
Virginia, www.vec.virginia.gov/vecportal/unins/insunemp.cfm
Washington, www.esd.wa.gov/uibenefits/index.php
West Virginia, www.wvbep.org/bep/uc/
Wisconsin, www.ucclaim-wi.org/
Wyoming, wyui.doe.state.wy.us/
Consult with your state agency to determine the most efficient means for application. Usually, this can be done online. Due to the large number of unemployment claims currently being filed, phone lines are often, unfortunately, blocked to a frustrating degree.
The Lay Off
Like many Americans, I was laid off from my job in late 2008. At first, it seemed shocking that it would actually happen to me, though it was happening to people all around me. I hadn't planned on it, but who ever really does? After becoming completely enraged and then terrified about what would happen to me financially with the economy in shambles and more people losing their jobs by the day, I decided to take some action.
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