That Happened!

New York - In a report released Friday, it is being said that a program that is supposed to help those who are unemployed be able to afford health insurance is so expensive that it really is unaffordable. The plans available under this plan, called COBRA, take up about three-quarters of a government worker’s compensation for unemployment according to the non-profit Families USA.

The average monthly premium for a family to continue their health care under this program runs about $1,068. The average amount of unemployment compensation is around $1,278 per month. The unemployment rate is at an all time high for the past 16 years of 7.2 percent. Some people who have lost their job due to the economic status would be highly unlikely able to keep themselves or their family on a health care plan of this cost.

People today who have health coverage mostly have it through their employers. About 46 million people in our country today have no health coverage while others who cannot afford it are under a government health care program.

The program COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, was introduced in 1985 and is supposed to help those who lose their job keep their health insurance for themselves and their families. However, even though their coverage is kept they are required to pay for its use plus 2 percent more for administration fees.

There are around 18 to 26 percent of those who are under the COBRA plan who actually use it according to studies. The cost of the program would pretty much take up every month of unemployment benefits they receive to keep themselves and family members covered.

The one benefit to obtaining and using the COBRA benefits after losing is job is that any pre-existing illnesses or medical conditions will continue to be covered. Most likely, those who choose not to use the program to continue their health insurance and decide to find another company in the market, those existing conditions would not be covered at all.

The COBRA program is being called a “tragic ruse” for many families who has been laid off of a job and in need of health insurance. For those who are unemployment benefits need to get extra benefits or some kind of other assistance in order to afford the help of this program. Otherwise those who use the program and are receiving only unemployment compensation will continue to be in great need as they will not have very much money left after paying for the use of the COBRA program.

President Elect Obama is intent on revamping the way America handles health insurance for the poor and needy and hopefully he will get these changes in place soon.