When my son lost his job, the advise I gave him was to use an handrail when going down stairs, and to drive a little more slowly. We prayed that his asthma wouldn't return. Who could afford COBRA when they aren't working? It appears just about everybody.
Families USA, the national organization for health care consumers, released Friday its state-by state comparisons of average unemployment benefits versus average COBRA premiums.
According to the report, Wisconsin’s average monthly unemployment benefit is $1,172. The average cost to continue employer-sponsored family health insurance coverage through the federal government’s COBRA program is $1,095 per month in Wisconsin. Individual COBRA coverage in Wisconsin costs $400 per month.
"COBRA health coverage is great in theory and lousy in reality," said Ron Pollack, Families USA’s executive director. "For the vast majority of workers who are laid off, they and their families are likely to join the ranks of the uninsured."
In 41 states, COBRA premiums cost more than three-fourths of unemployment benefits; in nine of those states, they cost more than 100 percent.
I'm no Paul Krugman, but it seems that only those with chronic illnesses would purchase it (and going without food, shelter or car payments). What's the point of buying it if you're healthy?
What is COBRA?
COBRA, the acronym for the federal law that created it — the Consolidated Omnibus Budget Reconciliation Act of 1985 — typically provides 18 months of health insurance to workers who have been laid off from a firm with 20 or more employees. The worker, though, must pay the full premium plus a 2 percent administrative fee.
Why not try to get back into their original group policy? At least you know the coverage (like mine, which once paid 5 cents on a $158 bill for a general wellness checkup for my husband).
Laid-off workers who can't afford COBRA can try to find an affordable individual policy in the private market. But they're likely to be rejected if they have chronic diseases such as diabetes, obstructive pulmonary disease, rheumatoid arthritis or other conditions. Also, premiums can be steep for people in their 50s and up, and some policies can leave consumers with high deductibles and other cost-sharing.
Maintaining family coverage under COBRA is impossible for most newly unemployed workers, with the cost equaling or exceeding unemployment income in nine states, including Florida, Delaware and Arizona, the report says. It says that even when laid-off workers receive the maximum unemployment income that their state provides, they generally still cannot afford COBRA.
My advice? Drive carefully, and don't wear long sleeves when cooking over a gas stove.
(As an offside, type 'COBRA' into the Connecticut Post's search box and Lieberman's name comes up as #2. Maybe due to his snakelike tendencies?)