Health insurance for unemployed workers

In this article, we seek to inform the debate over providing assistance to workers who lose their jobs during the recession by assessing the potential impact of an economic downturn on health insurance coverage and reviewing available approaches to secure coverage for unemployed workers and their families. We also summarize recent research and analysis to examine the likely challenges and benefits of these approaches.

Data and analysis are primarily based on the Census Bureau's Current Population Survey, the Urban Institute's National Survey of America's Families, and Medicaid data from the Centers for Medicare and Medicaid Services. We also draw on recent surveys and analysis conducted by researchers in the health policy field.

Maintaining health insurance coverage for unemployed workers is important to helping individuals and to stimulating our economy. While some families may be assisted by efforts to subsidize COBRA extension coverage, the potential reach of such an initiative is limited. Building on public programs such as Medicaid offers a targeted, efficient, and effective option but also presents financing challenges to federal and state governments.