Temporary subsidies covering large portions of health insurance costs for millions of unemployed workers across the country expired on Monday, leaving many who are already struggling financially without insurance coverage unless they can somehow pay for it.
The subsidies were approved as part of the federal stimulus package in February and were intended to allow up to 7 million jobless workers to remain on their former employer’s insurance plan for nine months by covering 65 percent of the costs.
“When workers lose their jobs, they often lose their health coverage as well,” said Ron Pollack, the director of FamiliesUSA, told Reuters. “For millions of laid-off workers and their families, the federal COBRA subsidies have been a health-coverage lifeline.”
With the subsidies now gone for its first wave of recipients, a report released by FamliesUSA on Tuesday found that – unless an extension of the benefits is approved by Congress – families with already limited incomes will be facing huge costs to make up for what COBRA used to pay, Reuters reported.
According to the report, average monthly family COBRA premiums varied from $979 in Idaho to $1,246 in Massachusetts.
For families who are unable to cover the increase in insurance costs but still need to pay for medical costs, payday loans may be able to help pay for medical bills that had previously been covered through the COBRA subsidies.
