And their woes continue. After fighting for and eventually getting Congress to pass an unemployment extension bill in July, the nation’s unemployed are facing another concern that will drain their meager resources. A recent survey showed that healthcare costs for unemployed Americans went up this year compared to last year’s figures.
According to a PRNewswire report, jobless workers are paying more for COBRA costs this year. In a nationwide survey by human capital firm Aon Consulting, it was discovered that a terminated worker is paying $429 per month this year for employee-only HMO coverage - a $30 increase over last year. For employee plus family coverage, a former worker is paying $1,251 a month – an $80 increase over last year. For PPO coverage, a jobless worker’s average monthly cost for employee-only is $449 this year compared to $439 last year; for employee plus family, the monthly average cost is $1,310 this year up from $1,275 last year.
“Those who are unemployed, and facing uncertainty about employment prospects and future COBRA availability, are utilizing the program more than we’ve traditionally seen to treat a variety of conditions prior to potentially losing coverage,” said John Zern, executive vice president of Aon. “The increased frequency and duration of COBRA use is creating a significant strain on the program, leading to higher costs.”
COBRA (the Consolidated Budget Reconciliation Act of 1985) includes provisions for members of company healthcare plans who have lost their coverage due to a “qualifying event” to continue coverage at the employee’s expense for a period of time. In May 31, the 65 percent COBRA premium subsidy approved by Congress in 2009 expired leaving newly terminated workers to shoulder the cost on their own.
Along with the 99ers’ call for a Tier 5 unemployment extension bill, jobless workers have also been clamoring for COBRA extension bill. COBRA subsidy has proven to be of great help to the unemployed. A study by Hewitt Associates showed that 38 percent of terminated workers opted for healthcare coverage – almost double the number from previous months.
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Pass tier 5 plz
All this talk about COBRA subsidizes puzzles me. Back when I was still collecting unemployment benefits (I became a 99er in March), I could barely pay the rent and utilities. I didn’t have any money left over for luxuries such as health insurance (or car insurance for that matter – which wasn’t a problem since I haven’t had a car in years).
Are COBRA subsidizes nice? Sure, there are probably many people out there who were able to use them. But first things first: Take the tens/hundreds of thousands of homeless 99ers off the street (of which I am one) and give their lives some degree of respect. Food and shelter are FAR more immediately necessary to the vast majority than health insurance.
Not that this necessity is visible to Obama.
Any politician refusing to help Americans who have worked most of their lives in this Country don’t need to be in office.We have paid for welfare, illegal immigrants, schools, hospitals, contribute to their getting elected. And in our hour of need they turned their backs on us.I don’t care how they get the money, just get it and soon. Anyone who is not in favor of 99er’s getting an extension should be voted out of office.That goes for Obama too. If u are not talking daily about the Americans who are suffering should be voted out.We should be the most important issue on their agenda.
!!SIGN MY PETITION ‘VOTE OUT THE REPUBLICANS IN NOVEMBER’!! humanrights.change.org/petitions/view/vote_out_the_republicans_in_november
We need more than COBRA. The approach to creating jobs needs a major rework, now, and something, even small steps, has to be done.
Purchasing health insurance is the last thing on the list if you are rationing food and dodging the landlord or facing foreclosure.
But people get sick. And stress related illnesses are going to jam the hospital ER’s across this country unless some kind of major intervention is taken.
Medicaid and free clinics are available at this point, but can they sustain the influx of millions without health care or jobs.
Feeling like I should answer “duh” to article— no disrespect intented.
I appreciated and availed myself to the COBRA subsidy for the 18 months after husband’s lay off. Actually, I have always felt my insurance usage and health background (two cancer dx with several surgeries, etc. – leaving me quite healthy, but uninsurable) were a factor in the underlying reasons for the lay off from his career after more than 20 years ! SAD and guilty does not begin to cover it…
But, the stat that EVEN with subsidy – ONLY 38% were able to hold on to insurance tells the story. And the story for many will not have a happy ending when the added stress of unending unemployment and the trials of being upended over extending unemp. is coupled with no health insurance???
We are about to be 99ers and daily face the future feeling more and more anger and fear. Where is our leaders when peoples lives are on the line? I feel the goverment has sat on the sidelines — wishing and hoping, maybe praying — but not expiditing a plan to catch up to the reality of our formerly middle class world.
suri, please allow me to wish you and your husband well. Surviving an illness takes tremendous stamina and mental strength, add unemployment to this and it’s unbelievable stress. I hope we have leadership presenting solutions soon.
Cobra who has that luxury ! I would be happy to afford school clothes for my son so he doesnt feel out of place !
APPLY FOR MASS.HEALTH….IF YOUR FROM MASS.; YOU SHOULD END UP WITH A FREE CARE, IF YOU HAVE NO INCOME…YOU ALSO CAN APPLY FOR FOOD STAMPS…IF YOU HAVE NO INCOME.SINGLE, YOU SHOULD RECEIVE $200 IN FOOD STAMP BENIFITS..
This is a crisis. The great American Middle Class is about to become a distant memory. America is becoming two nations, one for the rich, one for the poor. How low we have become. The Unemployment system in this country is broken. We need a 21st Century European style UI system, where you get your UI check until you find a job.