Is there some (legal) way I won't lose my COBRA premium subsidy?
April 29, 2010 7:03 AM Subscribe
COBRA premium subsidy: I have it, will lose it because of a temporary job, and while I can suck it up and deal, is there something I am missing?
So, I was unceremoniously and unexpectedly let go (not laid off) a couple of weeks ago after several years of highly praised service with the company. It sucks, but it's done and I'm just trying to move on to better things. I'm doing the whole COBRA thing, and am eligible for the AARA premium subsidy, which is a HUGE help. It means that rather than paying about $500/month, I pay about $175/month. When you haven't secured permanent employment, that can be a huge difference in your financial resources.
A week after being given the boot, I was hired to work a temporary full-time job with a staffing agency. It brings in less than unemployment (about $100 a week after taxes), but in terms of my resume and future opportunities, the loss is well worth it. I know the staffing agency offers insurance, but it wasn't until I was poking around last night that I found out that if I work 125 hours in four consecutive weeks I am eligible for their HMO. Awesome, right? Unfortunately, no.
My old company's insurance is superior to what they would be offering me, and I have regular meds and doctor visits to factor into my budget. If this were a permanent position, then fine, but it's not, and since I'm planning an out-of-state move, I won't be working for this staffing agency for much more than a couple of months, if that. So, I'll be sticking with COBRA, but as soon as I become eligible for a group health insurance plan, even if I do not enroll, I lose the subsidy. By working, I not only lose $400 a month, but I also will have to put out an extra $325/month for my insurance.
While I think it's nuts that I am basically losing $725/month because I want to be productive rather than do a lackluster job search and collect unemployment, it's apparently the way things go. My question for you, my knowledgeable MeFites, is there something I am missing?
Quitting the job is not an option, in part because a friend helped me snag the position, but also that feels wrong, would technically disqualify me for unemployment, and ruins a potentially good reference. I am thinking about floating the idea of somehow breaking the cycle of 125 hours in four weeks with the staffing agency, but I suspect that's a non-starter. Is there some loophole that I'm missing? Is my stressed out brain not thinking of a better solution? If you know about AARA, is there any flexibility when it comes to being offered another insurance plan via a temporary position?
I do realize that I will be able to claim the premium as a deduction for my 2010 taxes, but there's the short-term vs. the long-term, and right now losing that subsidy seems like it would screw me up during both time-lines. Also, I am not willing to try to skate by and not report being eligible for the group insurance. I prefer doing things above-board for a number of reasons, and it simply is not an option. Still, is there something that just hasn't occurred to me yet? Much thanks for any and all help!
So, I was unceremoniously and unexpectedly let go (not laid off) a couple of weeks ago after several years of highly praised service with the company. It sucks, but it's done and I'm just trying to move on to better things. I'm doing the whole COBRA thing, and am eligible for the AARA premium subsidy, which is a HUGE help. It means that rather than paying about $500/month, I pay about $175/month. When you haven't secured permanent employment, that can be a huge difference in your financial resources.
A week after being given the boot, I was hired to work a temporary full-time job with a staffing agency. It brings in less than unemployment (about $100 a week after taxes), but in terms of my resume and future opportunities, the loss is well worth it. I know the staffing agency offers insurance, but it wasn't until I was poking around last night that I found out that if I work 125 hours in four consecutive weeks I am eligible for their HMO. Awesome, right? Unfortunately, no.
My old company's insurance is superior to what they would be offering me, and I have regular meds and doctor visits to factor into my budget. If this were a permanent position, then fine, but it's not, and since I'm planning an out-of-state move, I won't be working for this staffing agency for much more than a couple of months, if that. So, I'll be sticking with COBRA, but as soon as I become eligible for a group health insurance plan, even if I do not enroll, I lose the subsidy. By working, I not only lose $400 a month, but I also will have to put out an extra $325/month for my insurance.
While I think it's nuts that I am basically losing $725/month because I want to be productive rather than do a lackluster job search and collect unemployment, it's apparently the way things go. My question for you, my knowledgeable MeFites, is there something I am missing?
Quitting the job is not an option, in part because a friend helped me snag the position, but also that feels wrong, would technically disqualify me for unemployment, and ruins a potentially good reference. I am thinking about floating the idea of somehow breaking the cycle of 125 hours in four weeks with the staffing agency, but I suspect that's a non-starter. Is there some loophole that I'm missing? Is my stressed out brain not thinking of a better solution? If you know about AARA, is there any flexibility when it comes to being offered another insurance plan via a temporary position?
I do realize that I will be able to claim the premium as a deduction for my 2010 taxes, but there's the short-term vs. the long-term, and right now losing that subsidy seems like it would screw me up during both time-lines. Also, I am not willing to try to skate by and not report being eligible for the group insurance. I prefer doing things above-board for a number of reasons, and it simply is not an option. Still, is there something that just hasn't occurred to me yet? Much thanks for any and all help!
Yeah, I did some digging around the ARRA information, and it sounds like you're right that you'll lose the subsidy as soon as you qualify for this new plan, sorry. Only thing I can think of (if you're not willing to try to find ways to not qualify by not working enough hours in consecutive weeks, which is what I might do-- if you can't get it arranged officially, could you call in sick a couple days every few weeks to get yourself under the hours?) is to check and see if there's a COBRA premium subsidy at the state level in your state, I think a number of states do-- I believe those are mostly for people working at employers too small to qualify for COBRA, but it's worth at least looking.
Also, I don't understand where the $400 comes from when you say By working, I not only lose $400 a month, but I also will have to put out an extra $325/month for my insurance.
posted by EmilyClimbs at 6:35 PM on April 29, 2010
Also, I don't understand where the $400 comes from when you say By working, I not only lose $400 a month, but I also will have to put out an extra $325/month for my insurance.
posted by EmilyClimbs at 6:35 PM on April 29, 2010
As crazy as it sounds, I wonder if you could talk the higher-ups at your current position into turning it into a volunteer gig. If you can restore your UIC and Cobra subsidy, I guess it'd a win/win. I know a lot of people might have ideological issues with this, but remember these are tough times, and you'll pay your fair share into the pot in due time.
Not knocking the advice here, but I've also had good experience asking similar detailed questions on the Clark Howard Radio Show "Insurance" message board.
posted by tfmm at 7:51 PM on April 29, 2010
Not knocking the advice here, but I've also had good experience asking similar detailed questions on the Clark Howard Radio Show "Insurance" message board.
posted by tfmm at 7:51 PM on April 29, 2010
check and see if there's a COBRA premium subsidy at the state level in your state, I think a number of states do-- I believe those are mostly for people working at employers too small to qualify for COBRA,
The ARRA subsidy applies to all state "mini" COBRA, there is no separate entitlement. In any case, her employer is subject to federal COBRA, so that's what she has.
posted by Pax at 8:57 AM on April 30, 2010
The ARRA subsidy applies to all state "mini" COBRA, there is no separate entitlement. In any case, her employer is subject to federal COBRA, so that's what she has.
posted by Pax at 8:57 AM on April 30, 2010
This thread is closed to new comments.
posted by Gungho at 9:51 AM on April 29, 2010