Medical Insurance and COBRA

[On Our own]

Dh just got laid off yesterday.

Its permanent: they closed the place for good.

That said we have always been careful and I think we could manage for about a frugal and tight year.

Except for COBRA. My job is PT so no bennies and COBRA looks like it will be $800 a month!

I have no excuse for not being prepared for that, but I wasn't. Losing all of our income and gaining a $800 a month new bill at the same time doesn't work. The kids will be eligible (I think) for the state program but not for a few months after he's officially unemployed. I have a preexisting health condition.

What do other people do?? I have certainly been unemployed before, but this is the first time I lost my health insurance for the kids....

 

[sufficientforme]

This kids will be able to get state coverage (medical/dental) however, the only way you would qualify is if you were pregnant. (at least in my state)
I feel for you, and pray your situation will improve quickly. When we were first married and did not have medical coverage we always used a walk in clinic which was half to a third of the cost of a regular doctor and they were always generous with the sample prescriptions. So maybe there is something like that in your area.

 

[Big Daddy]

Dh just got laid off yesterday.

Its permanent: they closed the place for good.

That said we have always been careful and I think we could manage for about a frugal and tight year.

Except for COBRA. My job is PT so no bennies and COBRA looks like it will be $800 a month!

I have no excuse for not being prepared for that, but I wasn't. Losing all of our income and gaining a $800 a month new bill at the same time doesn't work. The kids will be eligible (I think) for the state program but not for a few months after he's officially unemployed. I have a preexisting health condition.

What do other people do?? I have certainly been unemployed before, but this is the first time I lost my health insurance for the kids....

Who could possibly be prepared for an added 800.00 expense and a loss of job? Most people don't live in that lala land. You will have to stay on COBRA until your hubby finds another job with benefits. Or you could got to your church or friends or family or any number of other solutions offered by some in our society. At least your kids will be covered. If you have a current condition you wont be able to find any insurance. I'm sorry I can't say anything helpful. I'm very passionate about this subject and it just burns me to no end. We live in one of the most advanced countries in the world but we allow people in your position to fall through the cracks. If I lost my job I would be in the same spot.

Good Luck.

 

[ohiofarmgirl]

before you do anything see if you are eligible for the FEDERAL program that will pay up to 2/3's of your COBRA cost!!!!

our COBRA would have been almost $600 (for 2 of us!!!) but we end up paying just $200... this program is going to run out for us soon as it only last 8 months. but wow what a lifesaver

make sure your man runs, not walks, down to get signed up for unemployment. you can probably do it on line but DO NOT WAIT ONE MORE DAY!! some states make you wait a week before you get any benefits.

when our COBRA benefit ends we'll jump ship and do something else. probably get a lower fee 'catastrophic only' coverage... neither of us have a prescription or current health problems.

other tips:

1. dont panic
2. dont be ashamed - lots of folks are in your boat
3. dont give up
4. dont get mad - maintain your dignity and grace and try to stay positive. you might not be able to see it now but this could be the best thing that has ever happened to you.

my hubby has been off work since april. we are having the best year of our lives. we are CHEAP but still productive. dump all the bills you dont absolutely need and make sure you work as a team.

good luck!!

 

[enjoy the ride]

I was going to mention what ohiofarmgirl said- this will at least give you some breathing room.
You sound very, very together. Many people would not be as prepared as you right now.
Also, remember that your taxes will be dropping substantially for next year. So that might give some extra too. If you are an employee, change you withholding for next year asap.
Are you self-employed or an employee? If self-emplyed could you work part-time for a hospital? Usually they don't have great health benefits but it usually does give you sizable breaks on hospital costs.
Good luck with everything.

 

[On Our own]

I really appreciate the tips and support. I am not a big ask for support person (You know that whole sufficient self mentality. )

I was sort of ashamed at first and I still feel it some, we live in a VERY affluent neighborhood and the kids will notice this first with the gimme's simply not working for them. (They never have but it will be tighter now.)

Dh is still working this month out, and the union is trying to work out severance packages. If he gets severance as a pay out he'll have to wait , in this state, until the severance stops to collect unemployment. If it is as a lump sum he can apply right away.

I am employed PT and had just contracted for the next few months so I am looking for more PT work for the meantime and looking for full time to start in May.....

Dh is struggling. Its only been a day and he is so stunned. They just told them last week that they were open for sure until April. (Thats why I contracted for the next few months.) Then Bam!

The CEO made 10 million this year and is in line for a nice fat bonus....

When will they see the connection between firing people and the economy slowing down?? Probably never. I hear more "Let them eat cake" type comments every day from the top 10%ers.

 

[ohiofarmgirl]

If it is as a lump sum he can apply right away.

be really careful with this!! it can be viewed as a 'bonus' and taxed like that (up to 20%)... or if as a true severance and paid out on regular payroll it may be taxed like income. if you are not sure call your tax person!!

i think its particularly hard on the men (we women can take our lumps!)... when my man called and said he was On His Way Home (for good) i ran out and met him and made a joke that he was the one that pushed our state to the 10% unemployment mark. he's pretty easy going but he didnt need me to point out that it was going to be hard.

if you/he havent been laid off before there are several phases, kinda like grief:

1. shock
2. denial
3. self blame
4. why those i guys i oughta...

and then you either pivot to really mad... or.. say this isnt bad and maybe i'll go back to school and do this or that

see if there are dollars for reschooling - this might be part of the union package. if anything it will keep him busy. besides - you dont want him home all day 'manning' it up and getting underfoot
;-)

i think it USED to be personal if you got laid off - now you're just one of the rabble. dont be afraid to ask for support - we're all behind you!!

 

[FarmerChick]

WOW that is awful. Yes times are hard and will get very much harder in this country for many.

I am like Big Daddy when it comes to insurance. UGH and it just annoys me to no end that your pre-existing condition will limit you severely and those other nasties that come with med insurance!

Do the best you can.

I believe your kids will qualify for medicaid if needed. Call now...start checking into medicaid for the kids coverage. Make that call, explain your situation and see if you can get them signed up now.

Do all emergency plans at this time. Take inventory of your foods, buy only great sale items at the grocery, etc. Every penny saved right now from this minute means longer you can hold on thru hard times.

Unemployment and severance is wonderful...but remember that none of it lasts, it could be very long before another job so think frugal, frugal at this point!!!

Be there for your hubby.....be a team and hold on thru the hard times.

 

[Big Daddy]

If the severance comes in a lump sum it probably will be taxed at the max rate. Of course you will get part of it back when you file. My bonus is always taxed at maximum. The program for your kids is the CHIP program that congress extended to cover basically all children in the US. It's based on income. You know all the entitlement programs have screwy restrictions though. Hopefully your existing condition isn't too costly. There's thousands out there unemployed, but there are millions without health coverage. Hopefully you can find a program like Ohio is talking about.

I got laid off about 7 years ago. Fortunately I was able to find a job in 2 weeks. These days I don't think I could find a job for more than 1/2 of what I make. There's no way I could prepare for it.

At least the CEO is okay. Hate the thought that he might have to give up one of his vacation houses.

 

[Sunny]

This kids will be able to get state coverage (medical/dental) however, the only way you would qualify is if you were pregnant. (at least in my state)
I feel for you, and pray your situation will improve quickly. When we were first married and did not have medical coverage we always used a walk in clinic which was half to a third of the cost of a regular doctor and they were always generous with the sample prescriptions. So maybe there is something like that in your area.

You must live in Oregon. Its that way here. I cant get on the medical coverage unless pregnant. But because of complications from the last pregnancy, I can no longer have kids. When I was on the medical coverage last time. I could keep it until we made to much money. Then my DH made only $3 over the income limit. Now I no longer have medical coverage, and now cant get the surgery and get retested for possible cancer. Yikes. Oh well at least I feel fine now.