COBRA Subsidies Disappearing

The ranks of the uninsured could be swelling even more in upcoming months, because of the demise of COBRA subsidies that have enabled those on the unemployment lines to afford paying for insurance benefits while looking for work.  As of June 1, the 15-months of assistance from the federal government are coming to an end for the first wave of those who qualified for the program.

Although COBRA benefits are still available to these unemployed workers (for an extra three months, a total of 18), the costs at that point are quite steep, considering an already strained financial burden.

The subsidies are no longer being offered to the newly unemployed, although there is a proposal on the Hill (Capitol Hill, that is) attempting to extend the subsidies through year end. Of course, while there are other options, the costs are still not attractive and do have some stipulations that need to be met (i.e. having a pre-existing condition, as well as being uninsured for six months).

State run HIPAA-eligible plans are sometimes a possibility, though their premiums are generally very expensive and come with even more stringent qualifications.  Mini-COBRA laws are in force in 40 states, providing benefits for up to 36 months, but (again) the costs can be prohibitive in this instance, as well.

While finding a job continues to be a challenge, it’s no wonder that many of the unemployed just simply choose to forego insurance altogether and take their chances.  Sometimes it is just simply a matter of priorities…do we pay the mortgage or do we pay insurance premiums?  On average, premiums for a family cost about $15,000. A tad steep when you’re not earning a regular paycheck!  Not to mention that, for the high premium they are often required to pay, ex-employees may find they just aren’t getting close to the same coverage as they were from an employer plan.

The financial stress is a concern, naturally; but what about the toll this situation is placing on the health of these individuals?  A person with diabetes, cancer, heart disease or any other number of chronic, life-threatening diseases, who has no insurance and can barely pay for a home and food, is looking at a very scary outlook with this COBRA subsidy running out.

Unfortunately, it appears there is no easy, economic or moral resolution for this dilemma, either for the unemployed or the “powers that be” voting in Washington, D.C.