Unemployed: Now What do I do?

Monday, February 1, 2010

Unemployment is reaching historical highs. With an unemployment rate of close to 10% in many state, the lack of jobs in the United States continues to perpetuate the recession.

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Unemployment Does Not Cover Health Insurance

If you are on unemployment, you do not automatically qualify for health insurance discounts. In fact, if you receive more unemployment than 133% of the federal poverty level, you don't qualify at all. Where does this leave you, the newly unemployed?

Unemployed and Uninsured

Unless you can afford monthly COBRA payments, you will find yourself quickly uninsured. If you live in Massachusetts, where health insurance is mandatory, you will have to find a way to make your COBRA payments or face a significant tax penalty.

Reduced COBRA Payments are Available

If you meet certain criteria, you may qualify for reduced COBRA payments. Under the ARRA, or the American Recovery and Reinvestment act of 2009, individuals are eligible for a reduced COBRA payment if they are involuntarily terminated from their job. This would result in a payment of 35% of the COBRA premium instead of 100%. Only people fired between September 1, 2008 and February 28, 2010 qualify for this reduced COBRA payment. The reduction can last for a period up to 15 months, but may require extensive paperwork to be approved.


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