January 9, 2009
Why COBRA insurance does not work?

According to the Times, “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.”

While I have argued endlessly why universal health insurance is a must for all Americans, this point further illustrates how broken the system is.  Now if an employee gets a pink slip, the unemployment benefits provide some income for a limited period of time and may allow one to have insurance for her/himself and/or family, that is not how things always work out.  In many cases, people stop working for a variety of other reasons and have no unemployment benefits.  These individuals and their families have no way of having any insurance at all.  Imagine the impact it has on children!