The number of uninsured Americans increased in 2009, according to a recent survey. Three million more lost their health insurance plans as a result of the recession. Private employers dropped their coverage as they laid off workers.
Some proponents believe that healthcare reform will alleviate this problem by decoupling insurance from employment.
 Image: clementine gallot under CC 3.0 |
COBRA is a law that allows laid off or otherwise unemployed employees to retain their group health insurance coverage. Unfortunately, many people are unable to utilize it due to the high cost. Former employees must pay the full cost of the premium (as opposed to having it partially covered by the company), plus an administrative fee.
A subsidy of up to 45%–included in last year’s stimulus package–allowed those who lost their jobs between September of 2008 until this May to more easily afford health insurance coverage. That help expired on June 2nd. Some may choose individual health insurance instead, but similarly priced plans on the individual market include less coverage, and are still able to reject people with pre-existing conditions until 2014.
Democrats in Congress are currently trying to reinstate the subsidy, since unemployment rates are still high (despite the official end of the recession). However, many are worried that the expense is too high to add onto an existing budget deficit, so its chances of passing are relatively remote.
