Employer health insurance no longer option for many
Recession, depression, cutbacks and layoffs are words all too commonly heard these days in news reports and conversations. Since the beginning of the financial crisis, millions of Americans have lost their jobs and many economists are predicting that more job cuts are on the horizon. With the loss of their jobs, Americans are not only losing their source of income, but for the 63 percent of Americans under the age of 65 who have health and dental insurance through their employer, they are losing that as well. In February, the unemployment rate hit 8.1 percent according to the Bureau of Labor Statistics (BLS). This translates into roughly 12.5 million people who have lost their jobs. The Urban Institute, a nonpartisan economic and social policy research organization, estimates that for each 1% rise in unemployment, 2.4 million Americans lose employer-based health care. For many of the newly unemployed, their first step to maintaining health insurance is to sign up for coverage via the Consolidated Omnibus Budget Reconciliation Act (COBRA). That's exactly what Sally Hughes of California did. Sally Hughes signed up for COBRA after she lost her job in July 2008 and is thankful she was able to maintain health insurance. "Last month I fell and broke my two front teeth. With the dental insurance through COBRA I saved thousands of dollars on the treatment," said Hughes. "Plus, with COBRA I am still on track with my routine doctor visits and preventative care." COBRA gives recently unemployed workers and their families ...
