I'm beyond f*cked

[jimjam]

Gentlemen,

your learned advice is very much appreciated here.

First off, I'll be 43 in a few days. I have MS. The medication that
I use to treat it is around 5K per month. Luckily, I have insurance through my employer that covers it. That is, I did have insurance. I was laid off in July and part of my small severance was to pay my insurance for three months. Now that's up an I'm getting a bill for Cobra that I simply can't afford.

I have a job that pays not so hot and one I took only to get off of unemployment. My insurance has not kicked in there yet. In the meantime, I'm still looking for another job.

I hate to say I'm penniless other than that. I have about 20K in a 401. his whole thing started in 2007 when I was divorced. My wife and I weren't the greatest of savers to begin with and the divorce cleaned me out. Was building myself back up when I met a woman and she got pregnant in 2009. Then I lost my job of 13 years so whatever savings I managed to accumulate was quickly drained. Had to move away to find work that paid just enough to subsist so I saved nothing. Finally found a decent paying job in 2011. I saved some but not as much as I would've liked to. Child support and the general expenses of having a son made it difficult. Not to mention, rent, car loan, electric bills, groceries, etc. Like I said, I was laid off in July and my savings are dwindling.

My choices that I can foresee are

1.) Cash out my 401, drip this out until I get a better paying job.

2.) Move in with my parents and save some money until I get a better job.

Moving in with my parents would be like moving in with the Costanzas. And
I could see a real possibility of suicide with this option. Not joking.

Cashing out he 401 may save my short term sanity, but may leave me penniless in perpetuity.

I know I f*cked up and I should not have let myself get into this situation. So please, no lectures or shoulda, woulda, coulda. Believe me, I'm beating myself up with every minute.

Keep in mind, i'm 43! What do you think?

Thank you for your time and candor.

 

[Tenacity]

jimjam,

One of the things I NEVER DO, is tie my insurance policies to an Employer because if you and that Employer have a falling out, you are (as you say) fvcked. In terms of what you can do now, number one, I would STAY on Cobra and keep paying those premiums because even though they are high as hell they are lower than the $5,000 a month you would have to pay for your medical treatments.

Then, I would look at getting a private health insurance plan. Obamacare is about to do Open Enrollment starting next month on November 15th (https://www.healthcare.gov/get-coverage/) and I believe the plan would start in 2015. They have a Special Enrollment Period though for certain low income individuals, you MIGHT qualify for that, I would look into it.

Or, you could look at buying a plan outside of Obamacare through a Group Purchase Plan such as through your College Alumni Association.

All of my insurance plans are private plans through my University of Michigan Alumni Group Purchase Plan. My Health Insurance (tied with my HSA) is through there, my Dental/Vision Insurance Plan, Term Life Insurance with $250k DB, Renter's Insurance, and Full Coverage Car Insurance.

I can post what I'm playing in private, not sure if that's allowed to post here in the open. But when you look at what I'm paying, it's not THAT FAR from what you would pay under an Employer considering that the Employer does make you pay something towards the plans while taking what they pay out of the salary you "would have received" if they didn't offer the side benefit.

I'm in a great position, because my insurance plans follow me so if I'm ever struck with a major illness I don't have to worry about my insurance expiring, getting terminated, etc., I can instead focus on my HEALTH.

 

[jimjam]

Thanks, tenacity,

I should mention that the drug manufacturer of my prescription does offer to pay for the medication for those who need help, up to $14,500 a year. Not much considering the cost, but this can buy me a little time.

The way things are now, I simply can not afford both my rent and Cobra. Not to mention the other bills I have---electric, water, etc. At least I've no credit card debt

 

[Tenacity]

jimjam,

Got it, go to that Obamacare link and apply for a Special Enrollment Period. They have some provisions for people who WERE covered, but lost their job and their coverage was terminated, which is what you fit into. They should be able to get you a plan worked out pretty quickly that you can afford considering the tax credits applied (they even allow you to take the tax credit upfront so that would reduce the monthly payments now, rather than waiting for you to take the tax credit during tax return time).

 

[Atom Smasher]

jimjam, please put your age in your profile. 25 or older here and age must be posted in profile.

 

[Poonani Maker]

^^ he says he's 43..I feel for all you guys out there who are either unemployed or in jobs that don't pay ****, WHILE others around are obviously livin' it up! How. Do. They. Do. It??? How do all these people own a boat, and subsist on 5 grand a month (after taxes and able to save another 5K a month) easy. They must be makin' 200K /year to do all this, even more!

 

[Tenacity]

It's about how much you make and how much you spend, income and expenses. You want to be efficient at BOTH.

Income - Get into a high demand field with specialized skills, seek to bring in $100k plus a year as an individual.

Expenses - Live in a low cost of living area. DO NOT get married. Form a budget and live "quality" but spend below your means. Implement efficient tax management to reduce your tax bill. If you have children have them with a chick making AT LEAST $50k - $70k a year so you aren't on the hook for the vast majority of the child support payment split.

Make sure you have all of the proper insurance, as this will shield you from an unexpected event happening that would wipe away your savings. Then, of course, INVEST. Investment choices include:

(( High Risk ))

- Stocks
- Real Estate
- A Business You Own

(( Medium Risk ))

- Bonds
- Conservative Mutual Fund

(( Low/No Risk ))

- CDs
- Money Markets
- Annuities
- Muni Bonds
- Gov Treasuries

 

[zekko]

This is why health care is the huge issue that it is in the US. Obamacare should be cheaper than COBRA, but the deductibles are going to be high. I think around 15-20 years ago it wasn't like this. You could get good health care insurance and not really ever have to pay much for care.

I feel for guys like the OP who have chronic health problems.

 

[Colossus]

OP, I hear you.

I lost my job in September and I cant afford COBRA coverage, so I'm looking into a state plan as well. The affordable ones are 'disaster' plans----$6,000 deductible with 2 free well exams a year. And I'm a medical provider!! There are no breaks for us either. I've been blessed with good health but I know how quickly an injury can wipe out a $6k deductible. In 2013 I tore my bicep and all said and done, it was about $10k (I paid about $2k with insurance). And this was for a fairly routine outpatient ortho procedure.

I agree with Tenacity that it is probably wiser to have your own independent plan outside of an employer. Insurance in the U.S. is a hot mess, and honestly no better than it was pre-Obamacare. Sure there are 'affordable' plans, but you would burn right through your savings if you ever had to use one for something significant. There's not really one entity or part of the system to blame...it's a complex mess that isn't repairable without a MAJOR tax increase like they have in Canada. Even if that were to happen, the cost of living wouldn't change and we would have a host of new economic problems. Healthcare is very, very costly, and insurance essentially has both patients and providers by the balls as to what they will reimburse. Getting reimbursement is a constant battle of billing wizardry and careful dictations, and half the time we cant even do the workup we want because it wont get reimbursed.

As to your situation, I would try to get on either a state or federally sponsored plan and utilize as much aid as you can get from the Pharm company. You can no longer be denied for a preexisting condition. Plus if for some reason you need to leave your job, your coverage will remain intact.

Do not move in with your parents, unless your situation is dire. I think it would be a major blow to your mental health.

 

[zekko]

All of my insurance plans are private plans through my University of Michigan Alumni Group Purchase Plan. My Health Insurance (tied with my HSA) is through there, my Dental/Vision Insurance Plan, Term Life Insurance with $250k DB, Renter's Insurance, and Full Coverage Car Insurance.

I can post what I'm playing in private, not sure if that's allowed to post here in the open.

Why would you not be allowed to post what you're paying for health insurance? I would like to know what's available under the kind of alumni plan you're talking about.

I lost my job in September and I cant afford COBRA coverage, so I'm looking into a state plan as well. The affordable ones are 'disaster' plans----$6,000 deductible with 2 free well exams a year.

My observations are pretty much the same as yours. I look more at the Out Of Pocket numbers than the deductible - which is the most you can get socked with during a given year. If you suffer a catastrophe, that's the number you're going to be paying. Usually around $8000 for the plans you're talking about.