COBRA Benefits Pose Burden for Unemployed Georgians

By Odette Yousef

Atlanta, GA – Georgians who rely on COBRA for their family health insurance, are spending nearly 85% of their unemployment benefit just to pay for the monthly premiums. That's according to a report released today by the Washington-based health care advocacy group Families USA.

Under COBRA, people who lose their jobs are allowed to continue health coverage under their former employers' plans. The catch is, they may have to pay the full amount of the premium, plus 2% for administrative costs.

Linda Smith Lowe, a Georgia consumer health advocate, says anyone can imagine what happens then.

LOWE: People just end up dropping the COBRA coverage - not because they want to. They understand how important it is, but there's just not any way to manage it.

The COBRA burden for unemployed Georgians isn't the worst in nine states, the average monthly family premium exceeds what they get in unemployment benefits.

Families USA recommends getting the kids onto the state's Medicaid or children's health insurance programs, and have the breadwinner go for individual COBRA coverage. In Georgia, that costs 30% of the average unemployment benefit.