REPORT: UNEMPLOYED CAN’T AFFORD COBRA

When Americans lose their jobs, it’s not just their financial security that goes with it, but their health insurance. While many newly unemployed can access “COBRA,” a recent report by Families USA shows that the average national premium costs for family COBRA coverage can consume almost 84 percent of average unemployment benefits – making COBRA unaffordable to many Americans.

On average nationally, unemployment benefits are $1,278 while COBRA monthly premiums for family coverage are $1,069. In Massachusetts these amounts are significantly lower, but still unaffordable for many. The Massachusetts average monthly unemployment benefit is $1,698, and the average monthly individual COBRA premium is $419. Therefore the share of unemployment needed to pay COBRA premium is 24.7% Family coverage under COBRA costs an average of $1,154, or 67.9% of Unemployment Benefit.View the report and other state’s data here: http://www.familiesusa.org/resources/publications/reports/cobra.html

According to the Department of Labor, new unemployment figures hit 7.2 percent in December bringing the total number of unemployed to over 11 million. In order for any of these Americans to access health coverage through COBRA, they would have to devote an unrealistically high proportion of their unemployment checks to health care.

-From: “Caught between Unemployment Benefits and Health Care Costs”, e-mail from Families USA, January 09, 2009.

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