With many people losing their jobs and together with it, losing also their employer based health insurance, there is a dire need for health insurance for the unemployed. Fortunately, there are some programs that are available.

Typically, employee-sponsored coverage helps many working people with insurance benefits at a reduced cost. The employer subsidizes all or part of the premiums. This, unfortunately causes a double hit on those losing their jobs as they lose their health insurance coverage as well.

In such a case, check into COBRA that allows you to convert your former group health insurance plan into an individual health insurance plan at group rates after voluntary or involuntary job termination or reduction in hours of the covered employee. Spouses and dependent children who were covered under the affected employee are eligible for benefits as well. COBRA, or the Consolidated Omnibus Budget Reconciliation Act, was passed by Congress in 1986.

However, some of the unemployed cannot afford COBRA, as there is no employer subsidy and they have to pay the full premium.

Fortunately, as part of the economic stimulus package signed by President Obama, a premium reduction for COBRA insurance is now available to qualifying employees. With this plan, people who lost their jobs between September 1, 2008 and December 31, 2009 will only be responsible for 35% of the normal premiums that they would pay for COBRA coverage up to nine months. When COBRA eligibility notice is received by an unemployed person from their former employer, information on the subsidy and enrollment details will be provided.

However, there may still be those who can’t afford even the reduced premiums. In such cases, there some programs available through the government and also through private corporations and insurance companies that can provide assistance to cover the medical costs of the unemployed. You can contact the particular prescription medication company for more information. Otherwise, you can request your state’s department of insurance for help.

People whose last job did not offer any health insurance benefits will likely not be eligible for any assistance such as COBRA, conversion, or state continuation. You can contact your state’s department of insurance to find information about any affordable health insurance for the unemployed. Also check on your eligibility for state-sponsored health care, as well as Medicaid.