New Unemployment Number Indicates Over 529,000 Laid-Off Workers Lost Health Insurance from September through November

TOTAL NUMBER OF PEOPLE WHO LOST JOBS AND HEALTH INSURANCE SINCE RECESSION BEGAN IN MARCH CLIMBS ABOVE 911,000

Washington, D.C. -Based on the Bureau of Labor Statistics November report released today, the number of Americans losing their jobs and their health insurance continues to increase in the wake of the economic recession and the terrorist attacks of September 11. The consumer health organization, Families USA, now estimates that between March and November of this year, 911,680 people lost their health coverage and their jobs. Approximately 529,320 laid-off workers lost health coverage from September through November, according to the new Families USA estimate.

In a report released earlier this week, Families USA showed a monthly breakdown of the number of newly unemployed people who lost health coverage through October. Families USA emphasized that these numbers do not include the dependents of laid-off workers who also lost health coverage, data that is currently unavailable. Therefore, the data understate the even larger number of people who recently became uninsured.

Estimated Increase in Laid-Off Workers Who Became Uninsured,
March-November 2001

"As unemployment continues to rise, the number of Americans losing their health coverage is reaching epidemic proportions" said Ron Pollack, executive director of Families USA. "Many of these people are eligible to continue their health coverage through COBRA, but simply can't afford to pay for it."

Under the federal COBRA law, laid-off workers and their families can continue health coverage for 18 months through their past companies if those companies have 20 or more
employees. This week's Families USA report indicates that 38 states have supplemented
federal law by establishing COBRA-like health coverage for workers who were laid-off from smaller firms.

"Congress has the opportunity, as part of the economic stimulus package, to extend health benefits to the vast majority of newly unemployed workers, by providing substantial COBRA subsidies to those eligible and by including additional federal funding for state Medicaid programs," said Pollack. "Together, these solutions provide a solid lifeline for the nearly one million people, plus the even larger number of uncounted dependents, who have lost their health coverage since March."

The Families USA report is based on the Bureau of Labor Statistics' monthly unemployment reports as well as a study prepared by the U.S. Census Bureau concerning the proportion of laid-off workers who become uninsured.

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org