COBRA Health Care Bills to Skyrocket for Unemployed

Thousands of unemployed Americans will likely see their COBRA health care bills skyrocket in the coming weeks, reports the Associated Press.

Earlier this year, as part of the stimulus package passed in Congress, the federal government helped unemployed workers pay for their health insurance under COBRA.

COBRA allows unemployed workers to get health care coverage, but they must pay for the full coverage, including what their employer formerly covered. The stimulus bill cut these costs by about 65 percent for workers laid off in 2008 and 2009, reports the AP.

But those benefits start running out today, and many people will face difficult choices about whether to continue their medical care benefits. The AP outlines the touch choices:

A report being released Tuesday by the advocacy group Families USA finds that, on average, unemployed families who lose the COBRA subsidy will see their premiums increase from $389 per month to $1,111 per month, an amount that few long-term unemployed families will be able to afford, the group says.

It finds that premiums of $1,111 would consume 83.4 percent of the average unemployment check, leaving little for food, housing, and other necessities. In nine states — Alabama, Alaska, Arizona, Delaware, Florida, Louisiana, Mississippi, South Carolina and Tennessee — COBRA costs would actually exceed unemployment benefits.

Talk about being stuck between a rock and a hard place.

While congress is considering extending the assistance, there is no plan currently in place. The COBRA help expires based on when it was claimed, and people will be responsible for the full costs starting this week.

Are any of you affected by these changes? Any plans on how to cope? The insurance is certainly expensive, but medical bills could be higher without insurance covering part of the cost. Difficult decisions, indeed.