54% of Unemployed People In Families With Incomes Below 200% of Poverty Level Are Uninsured

Fifty-four percent of unemployed, low-income U.S. residents are unable to afford private health insurance through COBRA and are not covered by Medicaid, according to a report released on Friday by Families USA, the AP/San Francisco Chronicle reports. The report used estimates provided by the Lewin Group and focused on lower-income and middle-class workers with annual incomes of about $44,100 for a family of four, or about 200% of the federal poverty level. Many of these uninsured either do not qualify for or are unable to afford COBRA coverage after losing their jobs and are not covered by Medicaid (Freking, AP/San Francisco Chronicle, 2/6).

COBRA allows former employees of companies with at least 20 employees to remain on their employer-sponsored health plan for up to 18 months provided they pay the full premium plus administrative fees, the Detroit Free Press reports (Anstett, Detroit Free Press, 2/7). A recent Families USA study found that the average COBRA premium costs about 84% of an average unemployed person's monthly unemployment check (Kaiser Daily Health Policy Report, 1/12).

Friday's report found that one in five unemployed U.S. residents with incomes below 200% of the federal poverty level had health coverage through a private insurer or the military. The report also found that 25% are covered under Medicaid or other publicly funded programs (McClain, Tennessean, 2/7). Ron Pollack, executive director of Families USA, said that in 43 states Medicaid is not available for childless adults unless they have permanent disabilities (AP/San Francisco Chronicle, 2/7). As a result, many unemployed people or their family members are treated late for chronic or life-threatening diseases because they delay treatment (Detroit Free Press, 2/6). As of December 2008, there were about 5.8 million unemployed residents with incomes below 200% of the poverty level, 3.1 million of whom did not have health insurance coverage, according to Families USA.

According to the AP/Chronicle, the report comes as lawmakers consider subsidizing the cost of COBRA coverage and expanding access to Medicaid through the economic stimulus bill currently being debated by Congress (AP/San Francisco Chronicle, 2/6).

The report is available online (.pdf).