We have a law called COBRA that lets you continue your employers coverage for up to 18 months I think it is. You have to pay the entire premium including the portion your employer paid so the price tag is usually a shock.
So on Friday you have good health coverage, and then you get a recorded message on Zoom from your now former job. Now you have to pay for COBRA but you only have enough money reserves for two months of housing/food. So you apply for MediCal. Nope, you have too much money. So the reasonable thing to do is to take no health insurance.
Then, you get the coronavirus. Pretty bad. You’re young, so you live through it, but those days on a ventilator weren’t cheap. But unfortunately for you, the ambulance driver took you to one of those hospitals that sues its patients for non-payment. You should have told them to take you to a different hospital as you were gasping for breath.
In any case, you now have a medical debt of $40000 for a week or two of ICU. You have to file for bankruptcy. Unfortunately you’re young, so you’re barely into the principal on the house. So that’s gone.
Luckily, you still have your car. At least you can get to interviews for the few jobs left in the recession. But it’s sure hard to show up looking clean without a shower. At least now, you’re eligible for public insurance.
Yes, US health policy leaves much to be desired. But a few points:
Up to eighty percent of people on ventilators die to Coronavirus die. (This percentage is so shockingly bad that some doctors are doing all they can to avoid or delay using them.)
Most who need ventilators for Coronavirus are older and have other health issues already.
As someone in a high risk category due to being medically handicapped, I will suggest that a lot of those people aren't hale and hardy enough to have a good job with good benefits. I've done freelance work for years.
Though, yes, it's true: In spite of the "all homeless are junkies and crazies" meme, serious health problems and their cost are a significant contributor to people ending up homeless in the US. Another major piece is our lack of appropriate housing options.
In addition to fixing healthcare, the US desperately needs to fix it's housing issues.
> Now you have to pay for COBRA but you only have enough money reserves for two months of housing/food.
Upon passage of the CARES act, everyone that loses their job due to COVID is eligible for UI, and the federal UI is now $600/week, on top of the existing state UI. So in the state of California, an ex-Disney employee would receive $4200/month[1].
If you're single, $4200/month in California will more than pay for rent + health insurance + food.
If you're a working couple, together you will receive $8400/month.
I would recommend to anyone to do what it takes to pay for the COBRA. You have 60 days from the last day of your coverage to elect it, and a grace period of 45 days after that to make a payment. If you manage to find another job with benefits before then, and don’t need to make any insurance claims, you can drop the whole thing and not pay.
If you lapse in payment in your inherited coverage from your previous workplace, and get a new plan, will they take a premium for any pre-existing conditions they deem you might have?
Then, you get the coronavirus. Pretty bad. You’re young, so you live through it, but those days on a ventilator weren’t cheap. But unfortunately for you, the ambulance driver took you to one of those hospitals that sues its patients for non-payment. You should have told them to take you to a different hospital as you were gasping for breath.
In any case, you now have a medical debt of $40000 for a week or two of ICU. You have to file for bankruptcy. Unfortunately you’re young, so you’re barely into the principal on the house. So that’s gone.
Luckily, you still have your car. At least you can get to interviews for the few jobs left in the recession. But it’s sure hard to show up looking clean without a shower. At least now, you’re eligible for public insurance.