I never thought I would be laid off. Generally, working for the government is a pretty safe bet, even if you are a contractor. But the timing of the end of my contract just happened to hit right when everything was starting to shut down and my client agency used that as a reason to postpone all new expenditures. The re-bid, which we were likely to win, was postponed indefinitely. Even a tragically understaffed Federal government is vulnerable to economic crises, especially when a poorly handled response draws out the impact.
In the frantic taking stock that followed receipt of the official letter from my company, I learned some interesting things and confirmed some more.
Health Insurance
I can probably go without health insurance for about a month, but even that long, with plenty of supplies and meds, is sleep-losingly nerve-wracking. Life has taught me that the minute I think everything is under control, that’s when my monster (link to about monster page) throws a tantrum. I would think he would be courteous enough to realize that I can’t handle his tantrums while I don’t have health insurance, but I don’t think that matters to most people’s monsters.
1. In certain circumstances, your employer may continue healthcare coverage through the month in which you are laid off. My company also offers an option in which they subsidize your healthcare plan an additional 1-6 months depending on how long you have worked for them.
2. The Affordable Care Act or state-based healthcare exchanges allow you a special term of enrollment for “life events”, including the loss of your job. There are insurance agents, some of whom don’t charge a fee) who can help you figure out what plan works best for you, but be careful, they are an aggressive bunch.
3. Medicaid is also an option. You may think you are not the “kind of person” who needs Medicaid, but pride and perception should not get in the way of your health needs. Medicaid is one of the most efficient and effective government programs out there, and there is no shame in using it until you don’t need to anymore.
4. As a last resort, you can always get COBRA, which is an extension of your existing health insurance. Most companies allow you to buy into it for up to 18 or 36 months, but it is prohibitively expensive (you will be paying 100% -- both your portion and your employer’s portion), and if you have lost your income, it may be more than you can manage.
Lost Income
In addition to healthcare costs, there is all the rest: somewhere to live, food, clothing, transportation, even if it is limited.
1. Register for unemployment benefits as soon as you work your last day. The increased amount (+$600/wk) provided by the CARES Act expires at the end of July, but in some states, the period of coverage has been extended (e.g. from 26 weeks to 39 weeks in Maryland). The number of people who qualify has also been broadened to gig workers, part-time workers, the self-employed, and others who were not covered in the past.
2. You may qualify for the Supplemental Nutrition Assistance Program (SNAP), commonly called food stamps. And of course, there are food pantries that are trying to help people feed their families while we slowly move forward.
3. Your state may have organizations that can help with housing assistance, like this one in Massachusetts.
4. If you have retirement savings, you may qualify for a hardship withdrawal. Though it pains me (I am deathly afraid of not having enough saved by the time I retire), I will be rolling over the 401k from my current position into a money market account. There will be no penalty, and if I don’t burn through it all, I can roll it back into a retirement account.
5. Call your subscription accounts, credit card companies, auto loan companies, and any other place you owe every month. Explain to them what’s happening and see if they can reduce your monthly fees. Many of them will be happy to have you on a reduced plan instead of losing you altogether, and I have seen several car companies advertising deferred payments for a set period of time.
It’s a lot to keep track of, and many of us have a tendency to fall into a kind of apathetic inertia when things are bad, but the longer you wait to activate your safety net, the harder it will be to stay in front of your needs. This situation can’t last forever. Sooner or later, the disaster will pass and we will all find our feet again.