| The unemployment rate is near or above 10 percent. | | | | recession--passed by the Obama administration, a |
| Many of those unemployed people have families. Since | | | | partial subsidy for COBRA insurance was included for |
| most Americans continue to receive health insurance | | | | people who lose their jobs from May 31st. It subsidizes |
| through an employer, that means that a family can | | | | 65% of the individual or family health insurance |
| become uninsured if a parent loses his or her job. | | | | premium. Due to the long-term unemployment many |
| COBRA is a federal program meant to help. It allows | | | | have suffered, the subsidy has been continually |
| you to maintain your former employer's health plan. | | | | extended by Congress. |
| This is especially good for those with pre-existing | | | | Now, the subsidy will finally end. Those who applied for |
| conditions, because they have been previously unable | | | | the benefit as soon as it was available in March 2009 |
| to buy coverage on the open market. | | | | just received their final subsidy. Although the economy |
| Unfortunately, COBRA insurance is very expensive; | | | | is improving, the unemployment rates is still high. Those |
| even more so for families. Employers pay part or all of | | | | who have found jobs may be in less prestigious |
| the premium for current employees. When you are no | | | | positions without health benefits. Families may be |
| longer employed by them, you are responsible for the | | | | unable to afford the coverage if they have to cover |
| entire cost of your health insurance plan. In addition, an | | | | the full cost. |
| extra administrative fee of one or two percent is often | | | | However, there are still solutions. Provisions in the new |
| charged. Unable to afford it on unemployment | | | | healthcare reform law will make it easier for families to |
| compensation payments, many people drop their | | | | buy affordable health insurance plans despite the |
| coverage before the maximum 18 months they are | | | | pre-existing conditions of the adults or the children. |
| eligible. | | | | They can also choose less generous plans with higher |
| As part of last year's economic stimulus | | | | deductibles in order to get lower rates. |
| package--intended to get the United States out of | | | | |