The Truth Hurts

As much as it pains me to write this post, it is the truth as we know it.  I want my readers to know they need to do what is needed to plan accordingly.  The most irresponsible thing for me to do would be to continue blogging now about legislation that may or may not happen before Memorial Day. 

Those who have exhausted their benefits will get no attention from Congress at least until Financial Reform is done or the next scheduled cutoff date on June 2nd is near.  With most reports indicating a Congressional battle is on the horizon in the coming weeks, the chance of Congress picking back up the issue of unemployment is not good.  Especially when consideration is given that before the June cutoff date comes the Congressional Memorial Day break.  (Yes, another Congressional recess for one week). 

The absolute most headway the unemployed who have exhausted benefits can do is win the employment lottery and land a job.  All other chances are drumming up media attention so that additional weeks are at least considered before the next UI legislation is debated.  This should be in the interest of even someone who is currently on Tier 2 (for example). 

Remember, each and every 99er was a 46er at one time thinking for certain they would have employment.

This blogger will be focusing attention on just that type of media coverage needed and it will be interesting to see the April job numbers.  If another significant number of jobs are created there are plenty of reasons to speculate it is the end of the road for Federal UI assistance.  Remember, the cut off for UI is 8.5%.  No matter what tier you happen to be on (if any) - your state loses funding immediately if the rate drops below that level.

Just go ask an unemployed person in Texas still struggling to find work.  The state of Texas has an unemployment rate of 8.2%.  They are .3% shy of being able to have federal UI assistance.  For Texans, a Tier 5 would not help them now even if it was already passed.  This is why some unemployed Texans resent being called a 99er.  They never saw the full 99 week duration.  8.2% unemployment is still very high but not high enough to make the mark.

Needless to say, it's going to be a rocky road for the unemployed.  Most will need to adapt to a different career because the millions of jobs that left are gone forever.  Those lucky enough to fight the odds of even gaining employment and also lucky enough to gain employment in the same profession are jackpot winners in this job market. 

Remember that you have other options for assistance if you need them.  Contact your nearest department for food stamps and be aware of the non-profit organizations in your area such as FeedingAmerica, UnitedWay, or a community church.  Everyone needs a telephone and SafeLink wireless offers free service for persons in need. 

Avoid the negatives out there and the Faux stories geared to get you to just click the story.  If it sounds too good to be true, it more than likely is.  Remember that the next week or two will be dominated by Financial Reform Legislation and not unemployment legislation.

The absolute soonest time we can expect Congress to pick back up on addressing the unemployment crisis will be the minute Financial Reform clears.  Just this one time it would benefit everyone if Republicans just said nothing so the sooner Financial Reform is passed.  Make no mistake, the Democratic plan for reform will pass so it would be in the interest of everyone if they would just get it passed without any delays. 

The sooner that bill gets out of Congress is the sooner unemployment is addressed.

Understanding COBRA and "Mini-COBRA"

The American Recovery and Reinvestment Act (the economic stimulus legislation) provides assistance with premiums to help involuntarily unemployed workers purchase their former employer's COBRA or other continuation coverage. Originally, the act provided nine months of premium assistance for people laid off between September 1, 2008, and December 31, 2009. However, emergency legislation that President Obama signed into law on December 19, 2009, has extended this assistance: People can now get assistance paying for their COBRA premiums for up to 15 months if they were laid off between September 1, 2008, and February 28, 2010. Furthermore, in 2010, Congress may consider passing legislation that assists people who are laid off later than February as part of the anticipated jobs bill.

Currently, under the act and its extension, for up to 15 months, eligible unemployed workers will need to pay only 35 percent of their total COBRA premiums to continue the health coverage that they had through their jobs, and the federal government will reimburse employers or health plans for the remaining 65 percent of premiums. People are eligible for premium assistance if they were (or are) laid off between September 1, 2008, and February 28, 2010; have annual income during the tax year that does not exceed $145,000 for individuals and $290,000 for families; have a right to continued health coverage under COBRA or another law; and are not eligible for coverage under another group plan (such as through a spouse’s employer) or for Medicare. People with adjusted gross incomes between $125,000 and $145,000 (or between $250,000 and $290,000 for joint filers) will need to repay a portion of the assistance that they receive, while people with incomes below $125,000 for single filers and below $250,000 for joint filers are eligible for full assistance with no repayment.

More: http://familiesusa.org/issues/private-insurance/understanding-cobra-premium.html