Report: COBRA too costly for many - Richmond Times Dispatch
10.01.09
Published: January 10, 2009
-- When Doug Ashworth left his job last year as a firefighter because of health problems, he lost his health insurance.
He had the option of continuing his insurance under his former employer's plan, but he would have to pay the entire premium.
"It was going to be $1,100 a month," said Ashworth. "When you lose your job and they want $1,100 a month for health insurance, who can afford it? You lose your job, you still have to make your house payment, car payment, utilities, and they want $1,100 a month?"
Ashworth's story is not uncommon, according to a report from the Washington-based advocacy group Families USA that looked at the affordability of this continuation insurance, referred to as COBRA.
According to the report, many people would have to devote a big chunk or most of their unemployment insurance check to pay for individual or family coverage under COBRA benefits.
Virginia-specific numbers in the report show the average monthly unemployment benefit is $1,245, while the average monthly COBRA premium for an individual is $386 and the average monthly family COBRA premium is $1,079.
Source: Richmond Times Dispatch, VA