You appear to be a trully dedicated Librarian. You have obviously fought through substancial fiscal hardships to have obtained the professional degree you now hold.
In the more than 15 years in this profession I have seen and experienced similiar situations like the one you wrote about. Thank you for the obvious courage and honesty that you displayed in sharing your story. My advise to you is have faith and try to “stay the course”. If you attempt to “jump ship” (change professions) right now, you may very well face even greater problems due to the overall loss of jobs in so many, many sectors of our present economy. I would “hunker” down as best as I could right now.

Librarians are educators at heart. We are a highly intelligent, resourceful and dedicated group of professionals. I am certain that you are all of these things and far more. You love what you do, so hang on to this fundamental passion and enjoyment. As discouraging as it can be at times, and believe me I have lived it, do not allow someone to rob you of what love to do.

As far as insurance goes, I would exercise my research skills and explore low-cost insurance. I am also a single woman without medical insurance at the moment.
Let me tell you, it is not easy, but it can be done. My thoughts and prayers are with you. God Bless You!

That said, I have a few practical thoughts. One is that you have only been at your new position for a year—is it possible that those who got promoted had more seniority? If the boss has known them longer, she is more acquainted with the skills and qualities they have. Doesn’t mean you don’t have skills and positive qualities, and it also doesn’t mean she is playing favorites. She has a right and obligation to hire the person she feels is best for the job.

Take some time to identify some opportunities to develop your own skills and make positive steps towards those goals. Ask your boss for HELP in developing your career. She will be flattered that you trust her judgement. Getting to know her will help her to know you better. You don’t have to be a brown noser to get noticed, but sometimes you do have to step up a little.

Re: health insurance. I don’t know where you live, but in NY I had individual health insurance, it wasn’t for low income people, just for those who don’t have group insurance. It wasn’t inexpensive, but it was insurance, and did help me out a few times.

Even if you make under $25,000 a year, you make more money than I made on unemployment and that is not considered poverty level. I had to throw all my resources and caution to the wind and relocate to find work as a librarian. Grueling would be a good way to describe the past two years for me. I don’t like my current job, and I am already thinking of ways out, but I’m providing the best darn service I know how!

I wish you the best of luck and hope your health and outlook improves!