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.
March 16, 2009 at 3:23 pm |
[...] with it, she has a lot of direct experience. Take today’s post for example. She explains why most unemployed people do not have COBRA. I have gone through a layoff where the COBRA was totally unaffordable. Thankfully it was a [...]
March 16, 2009 at 7:38 pm |
A new new federal subsidy will cover 65 percent of premiums for nine months for some workers who lose their jobs between Sept. 1, 2008, and Dec. 31, 2009. If you’ve been out of work longer that, too bad. Also, you aren’t eligible for COBRA if you work for a small business.
And of course not if you worked somewhere that didn’t provide insurance in the first place.
March 17, 2009 at 2:30 pm |
I looked at your blog. It appears that you used to have health coverage, but that’s no longer the case. Without knowing your particular situation, I’m at a loss. However, I would like to mention that there are hundreds of free and “reduced cost” medical clinics throughout the country. They exist solely for the purpose of serving people who are uninsured. I know there are a number of free clinics in your particular area. Each clinic of this type operates a little differently from the others and has its own set of criteria. This may possibly be an option for you. If you haven’t already checked with some of these clinics, I encourage you to do so.
March 17, 2009 at 8:53 pm |
Thanks for taking a look. Yes, I exhausted my COBRA, then I was in the state ICHIP plan, but at $1200+ a month for two of us, we couldn’t keep it. Our futile effort to stay insured despite a dwindling income is probably going to cost us our house.
Many of the free clinics operated by my county have closed, and others only take Medicaid patients, and I have too much income, on paper anyway, to qualify. (One of the difficulties of downward mobility.) Some of those in my particular area are so booked up they don’t answer the phone, so I can’t find out whether I qualify or not.
But all of that’s moot anyhow, because if you need a specialist, all the clinics refer you to the same place, the county hospital. I’m on a list. They’re now filling appointments from referrals made last September. (http://illinillinois.blogspot.com/2009/02/wait-for-cook-county-health-care.html)
It’s frustrating, not only personally, but also because this state of affairs gets so little attention.