What with the large fraction of the American workforce currently unemployed, nearly every day brings news of legislation intended to manage the situation. Today, the news from Washington speaks of an eligibility restriction for subsidized health insurance. Due to a bill passed in February 2009, Americans who had lost their jobs (not left them willingly), would receive a 65% subsidy from the government to help pay for health insurance. According to Bloomberg, families receiving the subsidy paid an average of $398 per month, a vast difference from the usual average of $1,137.
Recently Unemployed Disqualified From Benefits
The newest twist in legislative policy disqualifies workers who lost their jobs after May 31st of this year from the subsidy. Unemployed workers already receiving the subsidy (about two million households) will continue to pay the current, reduced price for up to 15 months. It is recommended that disqualified workers who lost their jobs in June or later check if they qualify for Medicaid or The Children’s Health Insurance Program. Those who are under age 26 should look into joining their parents’ health insurance, starting September. 23.
Health Insurance Is A Necessity
We always advise that the only insurance policies a LearnVester should buy are those that cover financially devastating events. Health insurance is one of those policies. As anyone who has ever undergone major medical work or stayed in hospital knows, medical bills pile up fast. The last thing you want after leaving the hospital is an enormous check you can’t pay—and the accompanying debt that goes with it. Obviously, those currently without incomes have a harder time paying for their policies, but when it comes time to cut back on spending, health insurance shouldn’t be eliminated in the first round.