Sunday, January 11, 2009

Cobra Breaking the Bank for Unemployed

Families USA released a new report which has revealed that for many unemployed Americans, COBRA health insurance is simply too expensive.

Families USA, the non-profit group, put out the report this week, focusing on COBRA, the Consolidated Omnibus Budget Reconciliation Act of 1985.

The goal behind COBRA was to make health insurance affordable for unemployed Americans.

Families USA has found though that this is not the case, as they compared the average monthly premium for family health insurance under COBRA to how much compensation an average unemployed American received.

They found that the average compensation is around $1,300 for an unemployed American, while the average monthly premiums for family health insurance coverage under COBRA is $1,000.

This leaves next to nothing for families to live off of, making COBRA simply too expensive.

Overall, only 25% of those who are actually eligible for COBRA sign up for it, mainly due to the high cost.

With 47 million Americans living without health insurance, this is not a positive sign.

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