Unemployment benefit filing question... (health insurance, employment, transfer to)

[Mystery123]

Is there a waiting period for unemployment benefit?
Also, how does health insurance work?
I lost my job but have arrangement with employer to keep payroll running for few months for insurance.
I know I can extend insurance with Cobra for few months but my employer told me that they are changing carrier starting March so Cobra extension may not work after switching carriers.
Any information is appreciated.
thanks

[davidv]

File for unemployment immediately. There will be a period of time that you are not able to collect benefits. This period of time will be determined by the unemployment bureaucracy. Typically the wait time to collect benefits is 1-2 weeks. Get more information from the CDLE.

[Mystery123]

I'm more worried about the health insurance as we are expecting baby end of next month so filing unemployment means I have to have my employer terminate my employment and health insurance all together.

[davidv]

I am not sure of your premiums for COBRA, but if you lose your job, you would qualify for an ACA marketplace plan (Obamacare).

The Connect for Health Colorado site would be able to assist you with finding a health insurance plan. Since you are unemployed you would likely qualify for a very low rate.

[Mystery123]

Okay looks like I found the answer but I'll call COBRA tomorrow to confirm.

This site as Q & A that Cobra will continue even if my employer switches provider but it'll transfer to the new provider just like active employees.
COBRA Insurance Information Help :: Can my past employer change my COBRA insurance benefts?

Q: I was laid off and got cobra, the company I used to work for is switching insurance and they are telling me that this is switching my cobra now to their new insurance company etc. Is this right? Do I stay with what I have now and am paying cobra for or am I forced to switch through cobra to their new insurance company and coverage’s?


A: COBRA is a continuation of the employer's group health plan. If you are on COBRA and the past employer changes their group health plan during that time, than you, along with the rest of the active employee's will have to switch to the new group health insurance plan chosen by the employer.

If that's the case, I can terminate employment and file for unemployment without losing health insurance.

[JD401]

Originally Posted by Mystery123

Okay looks like I found the answer but I'll call COBRA tomorrow to confirm.

This site as Q & A that Cobra will continue even if my employer switches provider but it'll transfer to the new provider just like active employees.
COBRA Insurance Information Help :: Can my past employer change my COBRA insurance benefts?


If that's the case, I can terminate employment and file for unemployment without losing health insurance.

COBRA can provide benefits for an extended period, but, you pay a much higher premium for those continued benefits than what you were paying your employer. You'd be wise to research the new plans available, and see which way you come out better. I'm not certain, but you might find that COBRA coverage isn't your best option.

[Mystery123]

I don't expect to be out of job for long.
I just need to get coverage till the baby comes along.
Also, new coverage must be effective by February 1st so not much option plus if I change provider, the out of pocket deductible starts from scratch.
Lets see how it goes.
BTW, I thought benefit is like 70% of pay but I saw there is a limit of $500 something a week for unemployment that is not anywhere close to that percentage.

[coloradoalimony]

Originally Posted by Mystery123

I don't expect to be out of job for long.
I just need to get coverage till the baby comes along.
Also, new coverage must be effective by February 1st so not much option plus if I change provider, the out of pocket deductible starts from scratch.
Lets see how it goes.
BTW, I thought benefit is like 70% of pay but I saw there is a limit of $500 something a week for unemployment that is not anywhere close to that percentage.

FYI. I don't know if this would affect you or not, but Colorado has the *worst* gotcha in the US when it comes to unemployment - if you withdraw even a dollar while on the first year of unemployment from a 401K or other plan where even one dollar was put into the account by your employer, you are immediately terminated and other viscous penalties are also potentially applied. It is simply stupid, but our elected representatives are also stupid, so there you go. I had a long email exchange with my state representative at the time about this - she didn't give a crap about the difficult position this puts some people into. Cheri Gerou - be sure to vote against her if you get the chance.

There is not a single other state in the union that will do this to you, to the extent Colorado will, in fact, the IRS even changed their regulations to allow penalty-free distributions from 401K plans to pay health insurance premiums if you are unemployed. In Colorado, if you take advantage of that, you are immediately terminated from unemployment compensation if your former employer contributed to the 401K at all.

Man loses unemployment benefits after dipping into 401k | 9news.com

A Blister to My Eye: Screwed by the state

[Mystery123]

So if I get a job after few months and if employer puts money in to my 401k account, I have to pay penalties???

[coloradoalimony]

Originally Posted by Mystery123

So if I get a job after few months and if employer puts money in to my 401k account, I have to pay penalties???

No, if you withdraw *any* money from a 401K while on unemployment, your unemployment is terminated.

This applies if *any* of the money in the 401K was contributed by a previous employer.