Death is Not an Option: Health Insurance Help for Laid-off Workers

One of my clients was diagnosed with breast cancer after he’d unexpectedly lost his job as a Food Services Director. Another client’s “wrenched knee” made walking agonizing. Driving his car to job interviews was almost impossible. He needed surgery, but he’d lost his health insurance. A talented, 22 year old client was afraid to get the results of her ovarian cancer test – she’d been laid-off, how could she pay for treatments?

At approximately $400/month for individuals and $1,078/month for families, when they’re laid-off people are often shocked to learn the cost of continuing health insurance under COBRA. Their health insurance is no longer being partly subsidized by their employer plus there’s a 2% administrative fee. These “Dislocated Workers” also usually discover they had been making too much money to qualify for Medicaid.

If you’re eligible, it’s vital to keep in mind that you have 60 days to accept COBRA. During that time you can be looking at alternate insurance programs. For example, many Americans don’t realize that the average cost of private health insurance is $158/month for an individual and $366/month for a family, according to the Kaiser Family Foundation latest statistics.

Have you been laid-off due to “increased production going to other countries?” You might be eligible for benefits under Congress’ “Trade Readjustment Allowance (TRA).” Along with extended unemployment benefits, there is money for training and a health insurance coverage tax credit of 65% for COBRA, or private health insurance payments. Find out if your company has filed for TRA. If they haven’t, you and two other laid-off colleagues can file. Go online and/or contact your local unemployment office for eligibility and benefit information.

Many people aren’t aware Congress included a 65% COBRA subsidy in the February, 2009 “Stimulus Bill.” To be eligible you have to have been laid-off between 9/1/08 through 12/31/09. If your company has/had 20 or more workers, find out if they’ve applied yet. If not, pursue it.

Under the “mini-COBRA law” several states, including Florida, have offered subsidies to laid-off workers for a number of years. “65%” seems to be the magic subsidy number. Massachusetts’ “Medical Security Program” is the exception. That state offers its laid-off workers an 80% subsidy. They also provide full, basic coverage with $15 co/pays for those who truly can’t afford health insurance. Your state’s official website should have application information. It costs nothing to find out.

Even if you’re employed and have a good medical insurance plan, the associated costs of a catastrophic illness or an accident can be devastating. Ask your employer about offering a low-cost, high-benefit “supplemental insurance” plan that is employee-owned. Make sure they offer a plan that gives Employees the option of continuing the insurance, at the same “employer rate,” if their employment is later terminated. This type of plan is available; you just have to do your research.

John recently shared the anguish of hearing his lifelong friend say “I’ve worked hard all my life, paid my taxes, now I’m going to die because I lost my health insurance.” His friend had lost his job. He felt he couldn’t afford to see a doctor, by the time he did, it was too late. It wasn’t the first time I’ve heard such a heart-wrenching story, but I would like to make it my last. Please help me get the word out.