Unemployed? Likely Uninsured Now. COBRA? Many Unemployed Cannot Afford It.

    The consequences of Employment-based Health Insurance include that when there is no longer employment, there is no longer any Health Insurance, either, for many people.  For example, Florida is reportedly one of 9 States where the Family Coverage Premiums for COBRA are the same or greater than "total unemployment benefits."   Jeff Harrington, "Families Feel COBRA's Sting" (St. Petersburg Times Online, Friday, January 9, 2009).  This very informative linked newspaper article also provides a useful chart of the 9 States in question, entitled "Unemployment Squeezed by Health Insurance".

    The U.S. Congress passed the Consolidated Omnibus Reconciliation Act in 1985.  Known as "COBRA," it extended Health Insurance Coverage to unemployed workers for as much as 18 months.  The costs are high, however.  In Florida, again as an example, "[t]he state's average COBRA premium for family coverage, $1,037, represents 102.4 percent of the average unemployment monthly benefit, which is $1,013."  Id.  [Emphasis added.]  See Ceci Connolly, "COBRA Too Costly For Many Unemployed, Report Finds" (Washington Post.com, Saturday, January 10, 2009)(reporting that  "the individual must pay 102 percent of the policy's full cost.").

    The U.S. percentage comparison of monthly Family COBRA Coverage Premiums vs. monthly Total Unemployment Income is almost but not quite as stark:  83.6%, or $1,069 vs. $1,278.  Harrington, St. Petersburg Times, supra.

    Individual COBRA Coverage Premiums across the U.S. equal an average of 30% of Total Monthly Unemployment Benefits, while in Florida reportedly the same percentage comparison is 37%.  Id.

    According to a report released by"Families USA," the Premium availability mandated by COBRA may take a percentage of unemployment benefits ranging from 30% to 84%.  See id.  The web site for "Families USA" is www.familiesusa.org.

    The Kaiser Family Foundation further recently reported that every 1% rise in unemployment leads to a 1.1% rise in Uninsured people.  See id.  The web site of the Kaiser Family Foundation is www.kff.org.

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