Many people have lost their jobs recently throughout the United States. Fort Smith, Arkansas is no exception.
Good Samaritan Clinic has seen an increase in new patient applications during the past few months. Many local residents are scrambling to find access to healthcare they can afford while they search for new jobs.
Have you ever wondered what happens to unemployed people’s health insurance? Did you assume that most people who lose their jobs keep their health insurance?
It is possible for unemployed people who had health insurance with their former employer to keep their coverage. COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) gives unemployed workers and their families the right to keep group health benefits.
Unfortunately, the majority of unemployed people do not opt to continue coverage with COBRA. Why? Because COBRA is expensive, especially to someone who has recently lost a job.
The Families USA Foundation recently prepared a report on this subject. According to that report, the national average cost of family coverage with COBRA is 84% of unemployment benefits. In some area, it is more than 100% of benefits.
Many people mistakenly believe that unemployed people are eligible for Medicaid benefits. The Families USA report also explains that this is not the case in most instances.
If you’d like to read the full report, it is available here: Families USA Report about COBRA.
CNN recently featured a young man who recently lost his job. He had faced the COBRA dilemma. His story is included in the following report, “In tough times, health care considered a luxury“. Click here to see a video of that same story.
