There’s an interesting article in the Star-Telegram which exposes how medical insurance costs eats away at unemployment insurance benefits. According to the article, a single worker who has experienced a job loss will spend approximately 30 percent of their unemployment benefits just to continue their former employer’s health insurance plan.

If jobless workers want health insurance coverage for their entire family the costs will devour up to 80 percent of their unemployment benefits.

The article says:

When workers lose their jobs, they are usually eligible to maintain their health insurance coverage through their old employer if they pay the premiums, plus a 2 percent administrative fee… At present, paying for COBRA borders on unrealistic for most people who lose their jobs. The cost cuts too deeply into their government-paid jobless benefits .

Not having medical insurance and accruing medical debt can create huge financial disaster for any family especially if they’re unemployed. As we have previously discussed on this blog, medical debt is one of the leading causes of bankruptcy in this country.

Many unemployed workers are foregoing medical insurance because they are trying to avoid foreclosure or other financial disasters. But as we have mentioned before it is not realistic to believe that an unemployment check can sustain a family for any extended period of time.

Attempting to balance your financial life on an unemployment check is a huge mistake. Those individuals facing job losses or currently unemployed must consider all options, including bankruptcy to eliminate their debt and protect their assets such as their primary residence.

If you are unemployed and are forgoing medical insurance, do not wait until a medical emergency occurs before considering all of your options. Speak with a bankruptcy attorney today about how you can protect your assets from creditors while you attempt to weather this financial storm.