Unemployed squeezed on health insurance
09.01.09
WASHINGTON (AP) — Newly unemployed Americans will have to spend about 30 percent of their jobless benefits on average to pay for health insurance through their former employer, according to a new report.
And if they want coverage for their families, the report by Families USA says it will take more than 80 percent of their unemployment check.
Unemployment hit a 16-year high last month as another 524,000 jobs were cut. For all of 2008, government says the economy lost a net total of 2.6 million jobs.
When workers lose their jobs, they are usually eligible to maintain their health insurance coverage through their old employer if they pay the premiums, plus a 2 percent administrative fee. The benefit is referred to as COBRA insurance, because of the law that established it.
As part of his economic stimulus package, President-elect Barack Obama is proposing to spend about $80 billion dollars to extend unemployment benefits and to subsidize health care for people who have lost their jobs.
Source: The Associated Press