HealthSherpa Blog

Projecting an underemployed client’s income during the coronavirus pandemic

Written by HealthSherpa | Mar 27, 2020 4:19:24 PM

Advice in this article is subject to change. We will make updates as needed.

 

In a matter of weeks, the COVID-19 pandemic has shut down entire sectors of the U.S. economy. According to the Labor Department’s report, for the week ending March 21st, 3.28 million Americans filed for unemployment benefits last week.

As a health insurance agent, you’re almost guaranteed to meet new clients who have no idea when they’ll be employed again, especially since the outbreak’s current effect on the U.S. economy may become a lasting recession.

The information in this article may very well change in the coming days with the passing of the current stimulus package. Here is some tangible information to help you and your clients guess their projected income today.

 

Where to calculate weekly benefit amounts for unemployment claims

The amount of unemployment income (UI) your client receives depends on their state, past wages and the reason for job separation. The following links and excerpts should help you estimate your client’s weekly benefit amount (WBA). In most cases, your client will need to file their claim and wait for the state to mail back a statement before they know how much UI they will receive. 

We will continue to add information for other states:

California — 

Florida

Georgia

Illinois

Michigan

New York

  • UI calculator: https://labor.ny.gov/benefit-rate-calculator/
  • Unemployment Insurance FAQs: https://www.labor.ny.gov/ui/claimantinfo/beforeyouapplyfaq.shtm#10
  • We calculate your original benefit rate based on your actual high calendar quarter wages. Your weekly benefit rate is 1/26 of the high quarter wages paid to you in your base period, or 1/25 if your high quarter wages are less than $3,575. The current maximum weekly benefit rate is $504. Although your claim lasts one year (your benefit year), during that time you can only receive 26 times your full weekly rate.

North Carolina

  • Eligibility criteria: https://des.nc.gov/apply-unemployment/before-you-apply
  • The DES determines your weekly benefit amount by adding your wages earned in the last two quarters of the base period and dividing that number by 52, up to a maximum benefit of $350 per week. Benefits are available for up to 20 weeks. [3]

Texas

Virginia

  • Unemployment Insurance FAQs: http://www.vec.virginia.gov/faqs/general-unemployment-insurance-questions#a111
  • Currently the maximum weekly benefit amount is $378 and the minimum is $60.  Individuals must have earned at least $18,900.01 in two quarters during the base period to qualify for the maximum weekly benefit amount. Otherwise, weekly benefit amount is calculated by using the formula 1/50 of 2 High Quarters in the last 5 [4]. Benefit duration varies from 12 to 26 weeks, also depending on wages earned in the base period.

Wisconsin

The CARES Act: What we do know 

As written, the CARES Act (the current stimulus package) includes multiple relief measures for unemployed Americans. It includes the  following relief measures:

  • An extra UI of $600/week for up to 4 months.
  • If their adjusted gross income is less than $75,000 ($150,000 if married), individuals can receive a $1,200 rebate and additional $500 per child.   

For APTC eligibility, these relief measures will need to be included in your client’s projected annual income. You will need to include the extra $600 WBA in your clients’ current monthly income as well.

We advise that you reach out to your clients before they take on any of these relief measures and determine how fully using these benefits will affect their Cost Sharing Reduction (CSR). As a reminder, CSR’s are based off of your client’s annual income compared to the federal poverty level (FPL). Your client’s monthly premium may drastically increase if these relief funds tip them over 200% or 400% FPL.

 

Let us know what other information might be helpful either in the comments or through this form

 

[1] https://www.edd.ca.gov/about_edd/coronavirus-2019.htm

[2] https://www.nolo.com/legal-encyclopedia/collecting-unemployment-benefits-florida-32505.html

[3] https://www.nolo.com/legal-encyclopedia/collecting-unemployment-benefits-north-carolina.html

[4] https://fileunemployment.org/unemployment-benefits/virginia-unemployment-benefit-calculations/