If you were handed the pink slip today, would you know what to do?  Where would you start?  How would you manage?  If you’ve ever thought about this situation happening to you then read on.  CNN offers the following suggestions:

Know What You’re Entitled To

It’s easy to overlook what you’re entitled to while you’re still thinking about how you’ll make next month’s mortgage payment.  But just because you’ve been handed the pink slip today, doesn’t mean it all ends today.

Severance pay

Discuss this with your boss and refer back to your employee handbook on company policy and severance pay.  We often don’t look at the employee handbook past the first week on the job, however, this comes in handy when you need to get clear on what you’re owed should your position get axed.

Vacation pay

Tally your vacation and sick days, inquire as to company policy around compensation.

Vested stock options

You typically have 90 days to redeem them, again be sure to talk with your boss and/or HR about how to go about doing this.  This means extra cash in your pocket that will help you get through the next few weeks/months.

Contractors

If you’re a contractor get compensated for the remaining time on contract.  Hopefully when you started, your contract clarified that in the event of a lay off that you would be compensated through the end of your contract.

Healthcare

You are entitled to COBRA, however this is often 102% of the original policy, still it’s best to have an option in place just in case of a medical emergency.  Healthcare costs still remain the number one reason why the financially distressed declare bankruptcy.  COBRA is pricey but worth it.

Another option is to look at your partner’s health care plan and determine the added cost of having you on their policy.  Is it more than the COBRA plan, probably not, so this may be a better option as COBRA tends to be the most expensive option.

If you’re pretty healthy then an individual plan may be best for you if you have no disqualifying medical conditions that would dramatically increase your rates.

Join a union or professional organization that may offer discounted healthcare options for it’s members.

For example, NY offers subsidized programs for the self employed or low income individuals.

Hold On To Your 401k

Whatever you do, try not to raid your 401k, although I totally understand there are situations where this must be done.  The reality is that it’s happening all over the country but if possible, leave this as a last resort.

Leave it in the account and roll it into a new IRA and continue contributing if financially possible.

Keep Job Hunting Receipts

These are tax deductible, remember to do this before April 15th as these and other tax related deductions are often overlooked.  If you’ve been out of work for the last year then you need to look at expenses you incurred while on the job hunt.

Lodging

If you know that you may not be able to make the mortgage payment or rent because you’re not out of work, start planning ahead through eviction, however in my world, if this were to happen the mortgage would get paid first and foremost.  I need a roof over my head.  If this won’t be an option for you then start talking to friends and family about staying with them while you get on your feet.  This may not be the best option but it can often be the safest and better option financially than say a motel or shelter.

Start Networking….Yesterday!

Tweak that resume, put the word out and reassess your skills.  Here in the DC Metro area I know more than a few people who wait for it……walk dogs and pet sit for extra cash while they job hunt.  This is a great way to meet other people in your situation while giving your the flexibility to job hunt and make some extra cash.  It may not seem like it at first glance but trust me, there’s comradery when you’re all in the same situation.

Find out where the local social mixers are happening, go out and meet people.  Jobs are often secured not through Careerbuilder but through networking with others who can help you out, especially now.  I’d recommend reading Never Eat Alone which talks about the power of networking with a difference spin.

In today’s economy we’re faced with the worst happening everyday because of ongoing budget cuts and businesses failing left and right.  Know your options ahead of time and WRITE UP A PLAN.  If you’re in a high risk industry or know that your up next on the chopping block, then you needed a plan yesterday.  Hop to it and don’t be left in the dark when the time comes.

photo credit: Hamed Saber

It never occurred to me that the health care system for seniors in this country was so dire until my FIL became ill. To have every door closed to us because of a pre-existing condition, age and lack of continuing insurance blew my mind. So what options do seniors have when it comes to health care? Here’s what we found:

Group Insurance

Wikipedia:

Group insurance is an insurance that covers a group of people, usually who are the members of societies, employees of a common employer, or professionals in a common group.

Group insurance may or may not be converted to individual coverage. As group insurance gets big business for an insurance company with minimum operational expenses (under one master policy issued to an employer, union or any recognised group), it is usually less expensive than individual policies.

Now if you’re retired and battling a major illness which prevents you from working and obtaining group health insurance, what are your options?

Exactly, same questions we were faced with. Again, this is something we never thought about until now because we always assumed that Medicare or Medicaid took care of this sort of thing. He isn’t yet 65 and while his income qualifies him for Medicaid, he would still be living with us and they would count our income as I understand it which would make him ineligible. It’s like one frustrating merry go around that just seems so unfair to this section of our population. Don’t get me started on the cost of prescription drugs out of pocket.

Individual Insurance

After a comprehensive internet search we found a few plans that might be worth considering with the only issue being cost. Given his pre-existing conditions (diabetes and high blood pressure) we want a plan whereby he can see a specialist in a network, no deductible, no more than $50 per office visit to the PCP or specialist and emergency room coverage all for less than $300 month. What turned me off was the eagerness and shady behavior of the insurance agents who started calling 10 minutes after submitting the application. I don’t like being rushed into anything and so I had to tell one agent to back off while we get together and make a decision. After all, it isn’t final as to whether or not his stay here will be permanent OR if he will be returning to NJ and if so what level of independence will that mean for him?

It goes without saying that individual plans are more expensive than group plans because group plans get a larger discount for bigger business. This is our primary barrier to getting the best insurance as our preferred plan will run around $515 per month.

Medical Discount Plans

Medical Discount Plans are not insurance. This is a type of plan sometimes underwritten by insurance companies where you pay a set fee as which entitles you to plan benefits similar to that of regular health insurance. I am a bit wary of these plans as Ive never used them and not sure how binding the plan benefits are given that the company we interviewed could not guarantee for us how much they would cover after seeing a specialist. She kept on saying up to 70%, even with telling her he would be seeing a renal specialist and/or endocrinologist. Granted, they do have an advocate but what good does that do if the insurance company’s decision is final?

So, this isn’t a full health insurance policy and does not give one the same benefits and I am not sold in this plan. It merely gives a discount and boasts a large provider listing but what if they aren’t near? Well, we found out none of the 250,000 providers were near us and we live in the DC metro area, come on now. So this plan is a no go and that is final. And about the discount? This can get expensive if you need surgery or need to see a specialist, the latter of which is a reality for us at this time.

I am still waiting for the administrators of the Maryland Senior Health Insurance Assistance Program program and Maryland Health Insurance Plan (MHIP) to call me back to discuss health insurance options. Hopefully, they may be able to provide some information and insight into our options moving forward.

Have you been faced with a similar situation? If so, what were your options and how did you obtain insurance for a senior or edlerly person in your care?