COBRA health costs consume most of unemployment checks.

COBRA health costs consume most of unemployment checks.

Workers who have lost their job will face an even more shocking reality: The cost of keeping their health coverage may exceed their unemployment benefits.

A study by a health care policy group released yesterday showed that nationwide, while the average monthly unemployment compensation for laid off workers was $1,278 a month, the average monthly cost to that worker to continue family health benefits under COBRA was $1,069, or 83.6 percent of the unemployment check.

In a state-by-state survey, the authors of the report found that in 41 states the cost for a family exceeded three quarters of the average unemployment insurance income.

COBRA is so expensive because while workers usually contribute to their health insurance, companies usually subsidize 75 to 80 percent of the cost.

But, when those jobs are gone, the worker then has to cover up to 102 percent of the cost of that insurance. The 2 percent, is for administrative fees.

Many workers can substantially cut the cost of insurance by going to high deductible (from $1000 to $2,500) short-term plans lasting one to twelve months that can roll over to another year.

The benefit of a high deductible plan is that even the costs that come before the deductible is met are billed at a rate negotiated by the insurance company, which is generally more than 30 percent less than the hospital would charge someone without insurance.

No one can afford to be without health insurance while even a short hospital stay can easily cost $20,000.

Here at StaffingWork.org, we have looked at all of the highly rated insurance carriers and found that eHealthInsurance.com is quoting the best short term plans at the best prices.  You owe it to yourself and your family to fill out their sort questionnaire and get a quote.

Here is the link for eHealth Insurance