rssThe Unemployed Can Get Health Care — and Little Else
Friday, January 09, 2009 at 12:48 pm
- 7 Comments
As the unemployment lines grow longer by the month, a report released today reveals why many jobless folks will likely soon lose their health coverage as well.
On average, the cost to cover families under the Consolidated Omnibus Budget Reconciliation Act (COBRA) — the federal arrangement allowing laid-off workers to keep their employer-sponsored health plans by paying the full premium — consumes 84 percent of unemployment insurance (UI) benefits, according to the report by Families USA, a health care advocacy group.
In 41 states and the District of Columbia, family COBRA costs eat more than three quarters of UI benefits, the report says. In nine of those states, average COBRA premiums are as much as, or more than, the state’s average UI check.
An example: Michigan’s average UI benefit is $1,276, while the average cost to keep a family covered under COBRA is $1,075. Not much left, in that case, to pay the rent and feed the kids, leaving many with little choice but to drop the COBRA plan.
“COBRA health coverage is great in theory and lousy in reality,” Families USA Executive Director Ron Pollack said in a statement. “For the vast majority of workers who are laid off, they and their families are likely to join the ranks of the uninsured.”
Pollack called for subsidies to help unemployed folks afford their COBRA coverage, or some temporary arrangement allowing jobless folks to access Medicaid benefits.
The problem will likely get worse before it gets better. The Families USA report arrives on the same day that the government released figures revealing that employers dumped 524,000 workers last month, bringing the number of 2008 layoffs to 2.6 million. Nationwide, the unemployment rate now stands at 7.2 percent — the highest in 16 years.
Democrats in Congress have been pushing for an extension of UI eligibility, but less frequent are the calls for increasing the size of the check. Yesterday, Rep. Jim McDermott (D-Wa.), chairman of the House Ways & Means Subcommittee on Income Security and Family Support, introduced legislation that would hike UI benefits by $50 per week.
Families USA has just made a case why lawmakers should consider such a strategy in the coming stimulus.
7 Comments
Comment posted January 9, 2009 @ 1:09 pm
U. S. FISCAL SOLVENCY REQUIRES UNIVERSAL, SINGLE PAYER, HEALTH CARE!
All investments will become worthless unless we get the Insurance Companies out of Health Care! There is not enough money in the entire world to bailout all business and do a non-partisan Health Care System! Health Care cost has taken Businesses, and individuals, to their knees! I recommend that all U. S. Citizens have Medicare, with full coverage and with no co-payment at all, and then we should do a Federal Sales Tax that would fully cover Medicare.
Comment posted January 9, 2009 @ 2:34 pm
The U.S might want to consider a buy in medicaid coverage for unemployed people. We have been w/o employment for a year. As the article points out cobra is not a feasible option, I had no idea obama. as in touch, as he seems to be, would not be aware cobra is a farce. If we could pay a little a month for high deductible just in case a catastrophe occurs I would in a minute. I wish medicaid offered this. Clinics offer low income people a sliding scale for things like strep throats, pink eye, bronchitis etc.. The danger is in something BIG happening and spending the rest of ones life attempting to pay it off. We did the short term interim insursance, now thats over, can only do it once. It is a viable option for people though, we paid, I think 700 or 900 for 6 mos. coverage with a 2500, deductible. We had to use it and being unemployed it is a little hard to pay off the last 1550.00 we owe. The hospital gave us four months to pay even though they know we have no job, I would think they could give us more time than that, but its better than had we had no insurance. Kids 19 and under often qualify for the many state programs, a family can make up to 3500 and the kids qualify under Michild in MI or SCHIP. Rather than increase UIB they need to consider a different health insurance option, personally I'd like to see the govt explore an option to “buy Into” medicaid. Also check nto our prescription's manufacurere, they have been awesome to me. I need a prescrition drug that runs around 150.00 a month, the drugs manufacturer is sending it to me free of charge after applicable paper work was filled out.
Comment posted January 9, 2009 @ 9:09 pm
U. S. FISCAL SOLVENCY REQUIRES UNIVERSAL, SINGLE PAYER, HEALTH CARE!
All investments will become worthless unless we get the Insurance Companies out of Health Care! There is not enough money in the entire world to bailout all business and do a non-partisan Health Care System! Health Care cost has taken Businesses, and individuals, to their knees! I recommend that all U. S. Citizens have Medicare, with full coverage and with no co-payment at all, and then we should do a Federal Sales Tax that would fully cover Medicare.
Comment posted January 9, 2009 @ 10:34 pm
The U.S might want to consider a buy in medicaid coverage for unemployed people. We have been w/o employment for a year. As the article points out cobra is not a feasible option, I had no idea obama. as in touch, as he seems to be, would not be aware cobra is a farce. If we could pay a little a month for high deductible just in case a catastrophe occurs I would in a minute. I wish medicaid offered this. Clinics offer low income people a sliding scale for things like strep throats, pink eye, bronchitis etc.. The danger is in something BIG happening and spending the rest of ones life attempting to pay it off. We did the short term interim insursance, now thats over, can only do it once. It is a viable option for people though, we paid, I think 700 or 900 for 6 mos. coverage with a 2500, deductible. We had to use it and being unemployed it is a little hard to pay off the last 1550.00 we owe. The hospital gave us four months to pay even though they know we have no job, I would think they could give us more time than that, but its better than had we had no insurance. Kids 19 and under often qualify for the many state programs, a family can make up to 3500 and the kids qualify under Michild in MI or SCHIP. Rather than increase UIB they need to consider a different health insurance option, personally I'd like to see the govt explore an option to “buy Into” medicaid. Also check nto our prescription's manufacurere, they have been awesome to me. I need a prescrition drug that runs around 150.00 a month, the drugs manufacturer is sending it to me free of charge after applicable paper work was filled out.
Comment posted July 6, 2010 @ 7:12 am
U. S. FISCAL SOLVENCY REQUIRES UNIVERSAL, SINGLE PAYER, HEALTH CARE!
All investments will become worthless unless we get the Insurance Companies out of Health Care! There is not enough money in the entire world to bailout all business and do a non-partisan Health Care System! Health Care cost has taken Businesses, and individuals, to their knees! I recommend that all U. S. Citizens have Medicare, with full coverage and with no co-payment at all, and then we should do a Federal Sales Tax that would fully cover Medicare.
Comment posted August 4, 2010 @ 6:59 am
wonderful for those who just lost their job. hopefully gov't can pass bills like this more!
Pingback posted October 11, 2010 @ 4:46 pm
[...] 10.The Unemployed Can Get Health Care — and Little Else « The The U.S might want to consider a buy in medicaid coverage for unemployed people. We have been w/o employment for a year. As the article points out cobra is not a feasible option, I had no idea obama. as in touch, as he seems to be, would not be aware cobra is a farce. http://washingtonindependent.com/24647/the-unemployed-can-get-health-care-and-little-else [...]
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