Job, schmob … it’s the COBRA that counts
Image by skippyjon via Flickr
Guess what? I had a job interview today. At a food magazine. On the day that Gourmet folded. Fortuitous or not? That remains to be seen. I’m hoping for the best.
But what strikes fear in my heart, in truth, is not the idea of not getting a full-time job. It’s the idea of paying the full premium for my health insurance if I don’t get a job and the COBRA economic stimulus subsidy (wherein the government pays 65 percent of what would otherwise be 100 percent due from the jobless former employee) is not extended past the end of the year.
Per the New York Times, Democrats are “considering plans to continue through 2010 the extra unemployment assistance and health benefits available to people who are out of work for long periods…. The unemployment and health benefits are otherwise due to expire at the end of this year…. Extending the unemployment and health benefits alone through next year could cost up to $100 billion.”
Right now I pay something like $150 per month for the extension of my health benefits from my previous job. Without the federal government kicking in, that becomes more like $450, which, FYI, is more than the maximum weekly unemployment payment plus the $25 “really bad economy” stipend. I can do without the $25, but please, please, please … don’t take my health insurance away.
For me, a New York resident, at least there are options like the Freelancers Union, an organization offering a variety of choices for those who aren’t staffers to acquire health insurance without significant wallet bloodletting.
But not all of America has a Freelancers Union, nor does all of America freelance. And I’m sure there are others less healthy (knock on wood) and less childless (knock on … something) than me who really need that COBRA break.
Especially given predictions that the unemployment rate will hit 10.5 percent come June and “as Democrats have found, aiding those who have lost their jobs is simpler than preventing more layoffs and creating new jobs.”
Next time: Is H1N1 scarier for freelancers (who can generally work from home or at least in suitably sneeze-free environments of their choosing but may lack decent health care coverage and/or won’t get paid if they get sick) or fully employed folks who have to go to the office and, in order to do so, generally embrace germy public transit daily, but can take sick days and still afford their rent?
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Tell me about it, Jen. Should Congress fail to pony up, come February, I’ll be paying $1,500 a month in COBRA premiums. You read right.
And that, of course, is money you pray that you’ll never get back.
In response to another comment. See in context »Jen. Great point. I work with a company out of St. Petersburg, Florida called B|O|T|H, which stands for Back of the House(full disclosure, B|O|T|H is a client of mine). The company is offering a bundle of services to help freelancers become completely independent including setting them up as an LLC, making sure tax, legal, etc. is properly set up and providing access to health coverage like affordable indemnity plans regardless of pre-existing conditions….and a solo 401(k). B|O|T|H’s goal is to provide freelancers with all of the back-office support and work/life enablers and make them portable and permanent, not tied to a Job. You may want to check them out http://www.both-usa.com
When my wife worked, it was really just for the benefits so I could cash out the difference doing contract work. Her benefits package was absolutely outstanding, worth almost as much as her pay.
Still, not so exciting to go to work mostly for… dental, medical, and steep discounts on car insurance while living in New Jersey- cut our premiums in half!
People joke about marrying for the health insurance. Given that my COBRA is about to hit $500 a month … maybe that’s not such a horrible idea.
In response to another comment. See in context »Marry to save $500 a month? Somehow “COBRA Bride” doesn’t quite have a ring to it. At least stay single until Mr. Right Network comes along.
In response to another comment. See in context »