COBRA Health Insurance For Unemployed Americans Too Costly
January 10, 2009
Washington (dbTechno) - A new report released this week by Families USA has revealed that a program known as COBRA, which helps unemployed people with health insurance, simply costs too much.
Families USA, the non-profit group, has reported that the COBRA program is simply too expensive.
COBRA is the Consolidated Omnibus Budget Reconciliation Act of 1985. The idea behind it is to help workers and families retain their health insurance if they are suddenly unemployed.
The report has stated that the majority of these COBRA health insurance plans costs so much that they are pretty much unaforrdable to those unemployed.
On average, they cost those who hare unemployed nearly 70% of their government unemployment compensation.
The average monthly premium for family health insurance coverage was said to be just over $1,000.
This compares to the average compensation given to those unemployed monthly, around $1,300.
Only around 25% of those who are actually eligible for COBRA sign up for it each year.
This is a bad sign as it shows that for many people, to sign up for health insurance under COBRA while unemployed means giving up their entire check.
There are 47 million Americans living without health insurance.
The data from the report came the U.S. Department of Labor.
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Employer should participate in the cost of continued medical health insurance under COBRA. They fire people with little or no notice period and do not care that the severed employee’s health coverage stops on the date of the severance. Such lack of respect for an employee is totally immoral in a democratic society, which the USA proudly claims to be every day.
Medical insurance goes from $ 350 per month to 1,300 per month (my current case with Blue Cross/Blue Shield). The article above is totally accurate.
If an employer had to continue paying its portion of Cobra medical costs until the ex-employee finds employment elsewhere, there would be fewer people fired or let go. The head executive’s whim’s of headcount reduction should also cease.
I am in favor of new legislation to correct the lop-sided cost of Cobra insurance coverage.
The other issue is the continued existence of “At Will” labor law.
This very true. When I was laid off, I was totally shocked by premium for COBRA since I have no income that time. An alternative health insurence would cost me less than COBRA. Eventually, I decided not to participate in COBRA and pray to god to keep me healthy for 4 months.