Transition Assistance after Job Loss
If you lose or leave a job, you may qualify for financial and other help.
Workers pay the taxes that fund many of these services. Employers provide other services. If you qualify, it is your right to receive certain benefits. So, don't hesitate to explore these services. It's in your best interest to find out what help is available for you.
How Is Your Health Insurance Protected if You Lose Your Job?
Three federal laws could affect your health insurance or your health care expenses. Know about them if you lose your job.
COBRA
A federal law gives certain workers and their families the right to keep their group health insurance longer if they lose it due to changes in their work or family life. Such changes include losing a job or getting divorced. This is the COBRA law. It stands for Consolidated Omnibus Budget Reconciliation Act.
If you meet certain conditions, your group health plan will continue to cover you and your family, usually for 18 to 36 months.
HIPAA
Another federal law protects you and your family when you are changing from one group health insurance plan to another or from a group to an individual plan. This is the HIPAA law, or Health Insurance Portability and Accountability Act. HIPAA limits how long you need to wait to get care for a pre-existing medical problem. Your new group health plan can't turn you down or charge you higher monthly premiums just because of any past or present health problems.
Medicaid
Medicaid is a federal and state insurance program that helps pay the health care costs of some people with low incomes. Medicaid rules and benefits are different in each state.
There is also a special health insurance program, called CHIP. CHIP is for low-income children who may not qualify for Medicaid.
When Can You Get Financial Help?
Unemployment insurance benefits
If you are unemployed through no fault of your own, you may be eligible for unemployment insurance payments.
All states follow the guidelines in federal law, but administer separate unemployment insurance programs. Each state sets its own rules for eligibility, the amount of your benefit, and the length of time you can get benefits.
You can usually receive benefits for 26 weeks. During times of high unemployment or in special situations, you can get more weeks of benefits.
SSI (Supplemental Security Income)
You may be eligible for a monthly income from SSI if you are 65 or older and have little money and don't own much. People of any age who are blind or have a disability may also be eligible.
Every state has a different income limit that you can receive and still get SSI. You can own your home, a car, or a small bank account and still get SSI.
The basic federal SSI amount is the same all over, but many states add extra money. The highest federal amount is about $800 per month for a couple.
Food Stamps
You may qualify for food stamps even if you are not eligible for other benefits. They can help you stretch your money during a transition time.
There are resource and income limits that you must meet. A three-person family can receive a maximum of $366 per month in food stamps.
What If You're Permanently Disabled?
Social Security Disability Insurance (SSDI)
Most of us are aware of Social Security retirement benefits. But Social Security also has a large disability program.
SSDI pays benefits to you and certain members of your family if you are insured. You are insured if you have worked long enough and paid Social Security taxes.
To qualify for Social Security Disability, you must first have worked in jobs covered by Social Security. In general, you must have earned a minimum amount of money during the previous ten years.
Then you must have a medical condition that meets Social Security's definition of disability. This usually means that you cannot do work that you did before, and you cannot adjust to other work because of your medical condition. This definition of disability is quite strict.
In general, you receive monthly cash benefits if you cannot work for a year or more due to a disability. Qualified family members also get some benefits if you are disabled.
The rules for Social Security Disability can be confusing. But the government provides a lot of information to guide you. Also, you have the right to appeal if Social Security turns down your claim. About half of denied disability claims are changed during the appeal process.
Where Can You Get Help Finding Another Job?
Outplacement Services
Many large employers offer company-paid assistance, called outplacement services, to help laid-off employees find new jobs. They are often quite extensive. They can include private sessions and workshops with career counselors and job-search experts.
Career One-Stops
If you have used a job service office in the past, you may not recognize it now. It's well worth your time to give it another try.
Several years ago, the U.S. Department of Labor and all state employment offices began making exciting improvements in how they help jobseekers and businesses. There are now almost 2,000 Career One-Stops Centers. In one place, each Center has all the resources you need to find the kind of work that best fits you, get training in your community, and get a job.
SCSEP
AARP Foundation's Senior Community Service Employment Program is a work-training program for low-income people age 55 and older. It helps those in need to re-train for a changing workforce, to find self-confidence, and most importantly, to find a job.
Eligible applicants are placed in nonprofit, public, or community service agencies where they receive on-the-job training.
Eligibility is based on age, residency, and income guidelines set by the U.S. Department of Labor. If you are eligible, you can receive help with assessing your skills, setting your employment goals, preparing a resume, on-the-job and other training, and job referrals.
AARP Resources
AARP on
Private Health Insurance
A series of articles on COBRA, HIPPA, and other health insurance
issues.
Low Income
Help
Federal and state programs that can help in hard times
SCSEP
Are you 55 or older with a low income? Find out how to get
re-training and a new job with AARP Foundation's Senior Community
Service Employment Program.
Additional Resources
Benefits Check
Up
Public programs and benefits that you may qualify for. With some
basic information from you, it checks over 1,150 programs, to see
if you may be eligible.
Health
Benefits Advisor
Group health benefit information for when you experience changes
in your life and work situations--such as marriage, childbirth,
job loss or retirement.
State
Unemployment Insurance Offices
State-specific explanations of unemployment insurance and how to
apply.
Career One-Stop Centers Find the Career One-Stop nearest to you. Or call 1-877-348-0502 for information.
Federal
Disability Programs
Details on Social Security Disability Insurance. Learn about
eligibility and how to apply.
Books
Find these books online at Barnes and Noble.com
Nolo's Guide to Social Security Disability: Getting & Keeping Your Benefits, David A. Morton III, M.D., Nolo Press, 2003. Explains the in's and out's of this complex program in plain English.
