My Big Fat Health Insurance Situation

When I got laid off back in June, my first thoughts were not about health insurance. Quickly, though, my friend in HR (and I'm not being facetious, she's actually my friend) brought it to my attention, because she was eager to make sure I realized that there's currently a 65% Cobra subsidy available from the government.

When my paperwork came, it turned out that with the subsidy, my Cobra was $100/month. So for the first time ever, I went on Cobra while unemployed. In the past I'd either gone without health insurance or signed up for a plan that basically kicked in only if something went horribly wrong.

So, I had health insurance and unemployment insurance, and it was nice not to be totally screwed while unemployed. I began to look for a job - always a less-than-fun process. I absolutely hate not being gainfully employed. This time in particular I was torn between learning what not having a day job could really mean for my directing career, and going absolutely insane over living off of money I wasn't out earning.

Ultimately, I got a cool opportunity to take a 6-month gig at a studio, and I decided to take it. I've always wanted to work at a studio, and the position offered the opportunity to learn a lot of new things in a totally new environment. I love my new job, even if it ends in March and I'll be unemployed again.

But here's where my health insurance goes to hell in a handbasket.

To take the gig, I had to sign up with the temp agency the studio hires through. And the temp agency offers "limited-benefit health insurance." Which I didn't even know existed. Basically, if you get really sick, it just flat out runs out. And fast.

It's literally a better-than-nothing plan. And while I have risked having nothing, I was much younger at the time. At 38, I'm really not comfortable rolling those dice. (It's worth noting, too, that if I'm going to get a better-than-nothing plan, I want it the other way around. No immediately benefits like co-pays on doctor visits, but if you get cancer, it triggers and you get significant coverage.)

Worse, because of the temp agency offering me any form of health insurance, I stopped qualifying for the government Cobra subsidy. So now my Cobra is $260/month. My decision to stay on the Cobra officially makes my temp position WAY more about the experience than the paycheck, with more unemployment waiting on the back end. If I take another temp position after that, my finances will officially move back to mega suck.

I did look into individual plans. They cost less, but I didn't feel confident or comfortable about the companies after polling my friends. I wanted to research more, and I figured I can always make that jump. I had to decide about the whether to take the limited plan offered by the temp agency within 30 days.

I *would* like to find an individual plan, so after I complete my move at the end of the month I'm going to look into it again. I think I can find something cheaper than what I'm paying on Cobra, but I'm worried about the coverage. Still, if I end up temping again, I'm going to have to find something to switch to.

Three thoughts:

1. The fact that my former company was very cost conscious and trying to find the most afforded policy for them totally saved my butt when I got laid off. If my Cobra cost anymore, there's no way I could afford it. I mean, heck I can't really afford it now, but it was within the limits of possibility. If it had been over $300, for example, there would have been no way.

2. As I begin paying $260/month for my health insurance, I realize that what really annoys me about health insurance tied to your employer is that you build no relationship with any health company over the course of your life. When I call my car insurance, or my bank, or any number of other businesses in my life, they can immediately see that I've been a customer for years. Here I am paying $260/month to a health insurance company and costing them next to nothing, but by the time I *am* costing a health insurance company money because I'm old and sick, say, it won't be a company I've had a relationship with for twenty / thirty years. That blows.

3. My number one problem with health insurance being tied to employment is that it completely screws with the job market. I was raised to believe that there is a check and balance whereby if an employer treats their employees like crap, they will leave. Except if they have health issues, often they won't. They will sit in a job they hate because they need to stick with that health insurance. This isn't good for anyone, not even that company that's getting to abuse their workers, because unhappy workers are less productive and make mistakes. And if you don't think that unhappy workers sit tight due to health insurance concerns, I'm betting that you are 1. not sick and 2. not living pay check to pay check.

I've been laid off twice in seven years and now I'm a temp. I want to get real health insurance that's not tied to my employment. If you've got any recommendations for individual health care plans in SoCal, please leave me a note in the comments. Under $200 month would be best for me. Honestly, even that much makes me a little sick to my stomach, but "limited benefit health insurance" scares me more.

Comments

[Mahala]

When I took a small business management course a few years ago, our instructor told us about business organizations that offer group insurance when you become a member. It may be worth looking into.

[Faith Kramer]

Liz
First, look for individual coverage NOW before you need it. Once you even have a chronic hang nail you'd need something with guaranteed acceptance which will raise your costs signfiicantly.

we've just gone through this ourselves and if you would like more info dm in twitter

Faith at Blog appetit

[JDub]

I feel your pain, sis. My COBRA is $350 a month. First time I went on it, it was $180ish. Month by month, Blue Cross kept raising my rates until, when I turned 30, they upped it to $350 and that's after I'd switched to a less expensive policy.

Like you, I can't fathom being without it and actually had to have surgery on my foot the first time I was on COBRA. Thank GOD I did or I'd have been limping around for months, waiting until I found another job with health insurance benefits.

Health insurance is such a dire situation in our country - at least FINALLY there's something starting to be done about it.

But MAN does it suck in the meantime.

[uninsured, just paid 5 grand on a necessary surgery]

I hope this predicament works out for you. Imagine if you had Triad Asthma or Type 1 Diabetes.
Imagine if you needed medicine that cost $350 per month, in order to breathe and your insurance didn't cover that. Or you can't get any kind of coverage due to a pre-existing condition. Sooner or later, we all have a "pre-existing condition".
When it gets bad enough, most individuals realize Universal Health Care, as it is in most developed countries, is the only sane and humane way.

good luck.

[Angie]

**sigh** I feel your delema. My first suggestion is to ask you if you have a relationship with a doctor. If not talk to your friends, the people you trust and see who you trust. this is the person you will have your long relationship with. The person who will work through your health concerns and puts your health first. then find out who they contract with. They might be a doctor who only takes PPO, or open to HMOs or as I have learned limited network HMOs. Than you will have narrowed your search. The scary thing about employer supported healthcare is that they can change the healthcare they pay every year. Not because they are mean but because healthcare cost rise every year sometimes in the double digits... they are trying to save costs and not loose benefits for their employees. So when you talk to that doctor and they accept lots of different healthcare coverage you increase your chances of not loosing your doctor...really the one you want your relationship to be with. I hope this helps. And I wish you good health.

[Ina]

I've been a freelancer for nearly 15 years in production, and I've had Kaiser on and off, which I pay for myself. When I earned enough in my union jobs, those insurance plans were great (WGA is especially good), but there's just not enough work to keep my minimums up. There's also different organizations that you can join to get in on their group coverage, but in CA, we're very limited.
Lifetime employment doesn't exist. In production, everyone's a freelancer, even if they don't realize it.

[D E]

Liz:
It's your friend in HR at your former job. I can't believe that you were forced to give up a really strong benefit for a sub-par one; that stinks. Anyway, believe it or not, as of late, I have had to delve into the world of private pay insurance for myself. My daughter is no longer a full time student and was dropped from my husbands insurance. Luckily, I worked with a Broker for years that I trust completely, her name is Barbara Oberman; she now owns her own brokerage. I gave her a call to see if she had any recommendations...she did. I was pretty amazed to find that the world of HMO & PPO changes dramatically when you go private pay. Give me a call and I'll forward her contact information to you. I miss you terribly.
DE

[Chris]

A healthy person has to pay that much per month for insurance?! I'm from Canada so I have thankfully not had to deal with this...I knew it was bad down there but that's nuts. I sure hope Obama pulls through for you guys. (fingers crossed)

In the meantime I hope some of those leads pan out and you find something more affordable - I wish you luck! And stay healthy.

[~M~]

I lost my job in Jan 2007 and my COBRA was $412 a month. With unemployment of $1400 a month. And no subsidy, thank you Mr. Bush. So do the math. I am 41,I have ongoing conditions for which I cannot afford treatment or medication, and nohealth insurance. If I had KIDS maybe I could get somewhere. Since I am a single adult who simply cannot find any job I can die in the street.

I HATE that health insurance is tied to my employment situation, to my job. I hate it.

[Liz]

Wow, thanks everyone for the input and the stories. I hate hearing about everyone's troubles, including my own which don't even compare in so many cases, but I think it's so important that we talk about it on all the levels. That these health insurance struggles effect so many in varying ways. I do believe that " Sooner or later, we all have a "pre-existing condition"." and "In production, everyone's a freelancer, even if they don't realize it." D E - As soon as I'm moved I'm going to get that name from you.

And yes, Angie, the first thing I do is make sure my doctor is on whatever plan - I live in fear of losing him!!! I will take the step of calling the office to confirm every plan they take. I know, too, that in the past year I've had to switch groups within my plan to still go to him, which was really scary because of all the delays and what if something happened while I was switching??? I wouldn't have been able to see him within plan. :(

[A'Dell]

Agree, the whole thing is just...stupid. Knock your head against the wall until you pass out stupid.

As a working mother, I am working not for my salary, but for the health insurance. After day care there's only a paltry sum leftover. It's stupid, but I can't come close to buying these benefits on the open market. I'd have to pay more for less.

And what kills me is that Washington just wants to make sure we all have insurance. MORE INSURANCE IS NOT THE SOLUTION. IT IS THE ACTUAL PROBLEM.

Argh. A thousand times, ARGH.