ST. JOSEPH COUNTY — Jose and Rebecca Revulcaba have worked on their St. Joseph County home of 13 years.

They're adding several rooms, but had to stop in December, when AT&T laid off Jose and 12,000 employees across the country.

"The first thought was insurance," said Rececca Revulcaba.

They had COBRA, but like many others, were shocked at the price.

"There's no way we're gonna be able to afford, you know, $800 and something of medical insurance, a month," continued Revulcaba.

COBRA became law in 1986 to provide the unemployed with continued health coverage at group rates. So why is it so expensive?

"People are surprised because they think they're getting gouged," said David Hoffman.

Hoffman, with Hoffman Insurance Group in Granger, has been selling health insurance for 20 years.

"COBRA is actually the rate your employer is paying," he said.

Hoffman says employers must charge what they pay. There's also a possible 2 percent charge for administrative fees. He says many people also think they automatically get COBRA, but the law can be tricky.

For instance, companies with 20 or more employees a month are COBRA eligible, but it's from the preceding year.

"So if you had 18 or 19 and you got let go and you're thinking that you're going to have COBRA, it very well could be that you don't," Hoffman explained.

But many of the unemployed are now getting a break. President Obama signed the American Recovery and Reinvestment Act in February.
And it means, they pay less.

"There's a subsidy that the businesses are to take and pay 65 percent of your COBRA," Hoffman said.

That's just what happened to the Revulcabas.

"It was a lot cheaper, $335. More than half of what we were being offered the first time around," Revulcaba continued.

But just when they were considering that, AT&T called Jose back to work.

Now his goal is to get most of his home done summer. He also hopes their health insurance will also be reinstated by summer; because five months without it, was five months too long.

"It was a big relief for us. Don't have to worry about some things. But it still gives you, you know, how long is this gonna last?" Revulcaba asked.

Join us every Thursday at 6 p.m. as we introduce you to another family and show you how they're coping with unemployment. Here on WSBT.com you can read their stories, plus find resources to help you and your family, friends or neighbors.