What types of health insurance coverage can meet the needs of newly unemployed, low-income workers?
Short- and long-term public and private health insurance coverage for the working poor experiencing periods of unemployment depends on their health insurance status prior to their job loss and their level of income and assets subsequent to losing employment. Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA). Workers who received health insurance through their employer may be eligible for extended coverage under the federal COBRA option. This option allows individuals to retain their employer-based coverage during short spells of unemployment or during the transition to a new job. Employees choosing COBRA coverage must pay for the full cost of the premium and are eligible for the coverage for up to 18 months. The COBRA option may provide needed coverage for some low-income unemployed workers. However, many may not be eligible because they worked for small employers that are not required to offer COBRA, they did not receive employer-based coverage while employed, or they wer
