By Brenda L. Peterson, The Layoff Lady

When your “day job ends”, many things in your financial life change. For one, what is for many people their core source of income, ends. This often prompts a quick shift to a short-term survival mindset that will last from the layoff event until the first paycheck from that new job arrives. 

Let's talk about how to manage your healthcare during this time.  Note that I’ll outline options first, and then you can review all of the links at the end of this article for additional information. Brace yourself—there is a lot going on here.

Disclaimer: (You know there has to be one of these now that we're talking about topics like personal finances and health insurance.)

While I know quite a bit based on my previous work experience supporting financial coaches, my own research, and my personal life experiences, I do not currently hold a license or certification to give financial advice. The information provided here is educational information provided as guidance.

I hope you glean value from my lessons learned. Feel free to take my recommendations or not—but whatever you do, double-check my facts (and everyone's facts, for that matter). This is your life, and you will care more about your finances and health care than anyone else does. With that, read on. ​

​In the United States, where health insurance for many people is part of an employer-provided benefits package, thinking through the health insurance implications of a job change is critically important. While working, you have limited health care coverage options through your employer. You make your selection when you first start, and after that, once a year. In most cases, your employer pays for part of it, facilitates the payment for your health care coverage, and even allows you to set up and use a Health Savings Account (HSA) as a separate benefit. 

After you are laid off, your former employer will let you know when your benefits end. It may be as soon as your separation date, the end of the calendar month, or some other date altogether depending on your organization. If you have the time and ability to do so, it may be a good idea to fit in any doctor's appointments you have been putting off while you still have coverage. 

Once your employer-sponsored coverage ends, there are many options for healthcare coverage. You'll also need to take steps to enroll in whatever coverage you choose. Most of these options have an associated monthly premium, and some are more cost-effective than others. Here are a few possibilities for your consideration.

If you do receive a sewerage package, you may also receive continued healthcare coverage for a specified period of time. ​You may get health care coverage included for a bit. This could be the company paying for the benefits you had before, or an amount of money that is earmarked to pay for healthcare coverage. These are two very different propositions.

If the company continues to pay for your health benefits, your coverage will work as before with your same coverage levels and networks. However, if you receive money to pay for health care coverage, you will need to decide what to purchase, enroll, then pay for it as billed. 

COBRA stands for Consolidated Omnibus Budget Reconciliation Act. In short, this provision allows former employees to pay the total cost of their formerly work-sponsored health insurance on their own. If you choose this option, you can keep this coverage for up to 18 or 36 months. As part of your layoff paperwork, your now former company will send you information about the logistics and cost of keeping this coverage and let you know your deadline for signing up (which is typically 60 days).

The good news? You can keep your same coverage. The bad news? The cost may knock you back. Now, you'll pay the total price for your coverage instead of your employer helping offset the cause. For example, while working, you may have spent $500 a month for your family’s healthcare coverage, and with COBRA,  you will now likely pay thousands of dollars a month for that same coverage. 

Depending on your age and personal situation, you may have the option to be added to someone else’s employer-sponsored healthcare coverage. Here are two common scenarios: 
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• If you are 26 years old or younger, you may be eligible to be added to a parent’s healthcare coverage through their employer.
• If you have a spouse or domestic partner, you may be eligible to be added to their coverage through their employer. Some plans might strictly add legal spouses, while others may have less stringent requirements.

In general, if your former employer’s plan covered you, your family member's plan will allow you to enroll in their plan, even mid-year. Be sure to check with your family member's employer to see if being added to their plan is a good option for you. 

Remember, if you are added to your family member's health insurance plan, the additional costs for whoever is footing the bill can vary from “no big deal” to “holy crap, that’s an extra [whole lotta money] a paycheck!” 

Since the Affordable Care Act (ACA—also nicknamed “Obamacare”), additional healthcare coverage options have been available outside employer-sponsored coverage. To find out what health insurance options are available, your eligibility, and any amount of help (in the form of a subsidy) you might qualify for, check out Healthcare.gov, also referred to as “The Marketplace.” Alternatively, some states have their own healthcare-specific website, like MNsure.gov in Minnesota. Regardless of if your state uses the national site or their own, this is the go-to place to find out about possible healthcare options that comply with ACA standards, meaning that they include a base level of coverage (like preventative health screenings, emergency services, pregnancy, etc.).  
 
Many of these plans are High Deductible Health Plans (HDHP), and the higher the deductible, the lower your monthly premium, but the higher the possible out-of-pocket expense you will have. As with other high deductible plans, you can save money in a separate Health Savings Account (HSA) to help cover those expenses. However, Healthcare.gov does not have the option to help you set up an HSA account, so you’ll have to seek that out elsewhere if you are interested in setting that up. 
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One significant benefit of looking here is the possibility of getting a subsidy. A subsidy will help offset your healthcare cost and is usually applied before any premium you would need to pay every month. Typically, subsidies are calculated based on your projected income for the year, depend on how much money your household is bringing in, and may vary by state. You would need to enroll in an ACA plan within 60 days of being laid off.

Overall, Healthcare.gov can be a lot to juggle—but they do have help available in the form of agents, brokers, or assisters. 

Short Term health insurance is just that—lower-cost insurance intended to help you bridge the gap between employer-sponsored coverage. Typically, these don’t have preventative benefits (like annual physicals or flu shots covered), but they are significantly less expensive. In addition, this kind of coverage ensures that if something big happens, like an accident where you end up in the hospital, you won’t go broke paying for all those costs.

For example, during one period of unemployment, I bought short-term health insurance coverage for my daughter (for a tumultuous month where for a moment, it looked like all of my daughter’s parental units would manage to be out of work all at once). It was under $100 and ensured she had at least some coverage as we figured out the details of her longer-term healthcare coverage. 

There are several other options to help pay for healthcare costs varying from good ideas to decidedly bad ones. For example, you could buy a private health insurance plan, take part in Medicaid/Medical assistance based on your financial situation, explore a community health share program, visit community health centers, use telehealth, rely on Minute Clinic, use a healthcare-specific credit card, and/or use discount cards to minimize prescription costs. 

​When it comes down to it, consider the short and long-term implications of your healthcare coverage decisions (including the possible financial hardship of having a significant medical diagnosis or expense without being insured) before choosing your course of action.

By Brenda L. Peterson, The Layoff Lady

Searching for a new role is a rough process riddled with rejection, which is never pleasant.

If you're in a post-layoff career transition, It starts with your former employer kicking you out of the whole company and, in essence, saying, “You are no longer one of us.” At every step of the way, you’ll experience people telling you no in a variety of ways--and it hits hard since you're navigating so much uncertainty and so many life changes. 

Even if you are currently employed, job searching and the associated rejection is still no picnic. You're also dealing with the uncertainty of knowing how long it will take to find something new and the challenge of doing passable work at your current job while not knowing how long you'll be in limbo. 

Here is how that rejection may look.

Because of all of the uncertainty and rejection, this whole process can be a lot to bear. It’s hard to keep going when there are obstacles at every turn. Sometimes, even well-intentioned people who are genuinely trying to be supportive ask just the wrong question and make you feel even worse. 

It is paramount that you experience your emotions, then manage your mindset so you don’t let your feelings make the already complicated process of finding a new job even harder.

Here are a few ideas to help you work through the unpleasant emotions that will pop up during your quest for a new role. 

Befriend your feelings. Don’t pretend that you don’t feel how you do. Name them, acknowledge them, and then move on. Pretending those unpleasant feelings don’t exist will not make them disappear. Instead, it may silence them for a bit, but they will pop up later, usually at the worst possible time. Acknowledging each one will help them run their course–and also help you to increase your ability to manage the ups and downs of this process.

It’s impossible to will yourself into feeling better. Sometimes, you need to just sit with an uncomfortable feeling for a while and let it run its course. Cry a little. Rewatch your favorite movie for the bijillionth time. Have a little ice cream. Do a puzzle. Take a walk. Take the afternoon off from your to-do list. Some will run their course more quickly than others. 

​If you’re worried about something, researching answers and managing your expectations often helps. How many job applications does it typically take to get an interview? How long does it take most people to find a new role post-layoff? Which companies are hiring? You'll probably feel a little better by researching options, clarifying goals, and taking useful action.

​Even if you don’t find a complete solution, you at least know more. Having added knowledge will help you worry less or at least direct your worry toward taking productive action that will help you solve a problem.

Social media, specifically LinkedIn, can be a great job search tool. Unfortunately, it can also give you the illusion that everyone else is doing great and you are downright hopeless. Posts like “It only took me a week to find my dream job,” or "I just got an awesome job (aka the one you were interviewing for)," “I’m still employed but I feel SO BAD for my former coworkers who are jobless,” or “Every company ever is doing more layoffs (which means more competition for each job)” will only make you feel worse. Remind yourself that social media isn’t real life and disengage. 

When everything feels hard, taking care of yourself needs to be your top priority. Here are a few quick and easy ideas to make you feel almost instantly better: 

• Breathe.
• Drink water. 
• Eat regularly.
• Rest.
• Shower.
• Take a break.
• Move your body.
• Go outside.

By Brenda L. Peterson, The Layoff Lady

While your resume is a concise 1-2 page marketing piece intended to showcase your skills as they apply to a specific job, LinkedIn is your professional billboard to the whole working world. 

When actively searching and applying for a job, you’ll include your LinkedIn profile on your resume. Hiring managers and recruiters will often view your profile to see which connections you might have in common and to learn more about you in general. Furthermore, recruiters may source you (invite you to apply or interview for an opportunity) based on the content of your profile.

Whether you are actively applying for a new job or simply building your professional network, it's a good idea to review your LinkedIn profile regularly and make updates to ensure your information is current and complete.

Filling in these fields on your LinkedIn profile will make it an even more valuable tool as you build and grow your professional network:
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• Profile Photo: This is the primary image, displayed in a circular frame, that represents you on LinkedIn. It should be a headshot—a photo featuring a recent picture of you focused on your face. You don’t need to suit-up for this either. Make sure you’re pictured solo, and the photo has the look and feel that best represents you.

 

• Background Photo: When someone views your LinkedIn profile, they’ll see your profile photo, front and center, and your background photo along the top of your profile. Be sure to include a background photo aligned with your professional brand. You can even use a tool like Canva to personalize your background.  

 

• Headline: Your headline defaults to your current job title and company name. Since this is a high-value space, I suggest personalizing this text based on your LinkedIn goals. For example, if you're job searching, consider including your target job title and your most relevant skills. Keep in mind that when you comment on someone's post, they will see your name and the first part of your headline. Overall, the keywords in your headline impact your findability on LinkedIn.
     
• Experience: List your recent work experiences and share a few details on each role. For each job, fill in the required fields, including your dates of employment. For the description, include a sentence or two about what you did and keywords to highlight your skills further. Consider focusing on your last 10-15 years of work experience.

 

• ​Education: Include the schools attended and degrees earned. I suggest leaving off years since they may cause people to speculate on your age or form opinions on your experience level. Adding schools attended here is a great starting point for connecting with others who attended those institutions. 

Here are a few ways to make your LinkedIn profile even more impactful: 

• ​​About Section: The About section is at the top of your LinkedIn profile and gives you a chance to tell. If you're job searching, this is a great place to include details about who you are and what you are looking for in your next role. You also have room to add additional bullet points if you like. Write this in the first person (using “I” language) and further showcase who you are professionally. 

 

• Customize Your Profile URL: By default, your LinkedIn profile's URL (web address) will be long and not very meaningful. You can customize your URL to make it friendly. I suggest using some version of your name. This minor update will look more professional on your resume—and make your profile easier to find. 

 

• Emojis: While you don't want to add too many cutesy emojis, using these tiny graphics is a nice way to break up longer bodies of text. Using a unique graphic for a bulleted list, an envelope next to your email address, or a splash of color to divide up long bodies of text, you can leverage emojis to liven up your profile and posts. 

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• Skills: Within LinkedIn, you can select up to 50 skills that will be included on your profile. This is another great opportunity to look at keywords you commonly see in job listings for your target role. For added impact, you can indicate which skills you used in the experience section, too. 

What information do you include on your LinkedIn profile and why? What details do you skip and for what reason? Share your thoughts in the comments.