So I am now feeling the bite of the famous COBRA. The insurance NOT the wacky guy from G.I Joe!!!!
When I lost my job I also lost my insurance and since I do not want to be without coverage I decided to with COBRA. I know that if I searched around (A LOT) I could probably find insurance coverage equal to what I had but I was really not in the mood to do so.
I decided to take the COBRA insurance which means that I would now have to pay the portion that my previous employer paid. I am now paying a total of $331.50 for insurance (I took some high limits based on previous needs and I have a high deductible health plan) to keep my insurance at the previous levels.
My previous budget for ‘Health’ was $185 montly, with $75 going to my Health Savings Account and $110 for out of pocket costs for doctor and dentist visits. I would then reimburse myself for those out of pocket costs from the Health Savings Account when there was enough accumulated in the account.
With my having to pay $331.50 up front now it means I am well OVER the Health budget for the month, even with reimbursing the money from the balance in the Health Savings Account. All I can do now is continue to pay the amount and show that column as being overspent on the spreadsheet. Then when I get a job and get employer covered insurance I will not have to deal with that any more. I am taking the money for those monthly payments out of the emergency fund for now and will replenish that account once I get a new job.
I am happy that I
-have an emergency fund and
-am debt free
because those two things allow me to make it month to month without a job and not lose my mind. I simply cannot imagine being without a job and having to pay my
and NOT have any savings in the bank to pay for my daily expenses. The advice about trying to work up to SIX MONTHS of emergency fund is certainly helpful and while I am watching the fund go down it is still comforting to know that I have that.
I will have to work very hard to rebuild my savings when I get a job because I keep taking money out…but I have done it before and I know I can do it again!