The number of new jobless claims jumped last week as mass layoffs continue to take their toll on the economy.

The Labor Department reported yesterday that the number of newly unemployed workers seeking benefits rose last week to 626,000, the highest level since October 1982.

Today, the government will report the January unemployment rate, which economists expect will hit 7.5 percent, up from 7.2 percent in December. That would be the highest rate in 17 years.

With layoffs come concerns about health care coverage.

A study released last month by Families USA, a health care policy nonprofit in Washington, D.C., found that in 41 states, including Pennsylvania, the cost to continue family health benefits under COBRA exceeded three-quarters of the average unemployment insurance income.

In Pennsylvania, the average monthly unemployment insurance income is $1,468, while the average cost to cover a family under COBRA is $1,107 or 75.4 percent of the unemployment income. The average cost to cover an individual is $403 a month or 27.5 percent of the unemployment insurance income.

COBRA, which officially stands for Consolidated Omnibus Budget Reconciliation Act, requires that people be allowed to keep their health care coverage up to 18 months after they lose their job -- as long at they pay the premiums.

But COBRA is not the only option for the unemployed.

"Most people are not aware of this market," said Sam Gibbs, a senior vice president of eHealth Insurance, an online broker that matches consumers to individual health plans. "If you go online or talk to a licensed agent, you can find a very comparative plan for much less money." California-based eHealth offers 87 plans in Western Pennsylvania. Before buying insurance, check with independent rating agencies such as Standard and Poor's or A.M. Best to make sure the company is reputable.

Michael Weinstein, spokesman for Highmark, said the insurer had not seen a substantial increase in applications from individuals, but that there had been a "noticeable increase" in interest for high-deductible health plans.

"While the total numbers are not that large, the increase suggests that people are looking for more affordable options that offer a lower premium as an offset for some higher deductibles and cost-sharing," he said.

He added that Highmark "will be monitoring this situation closely as the economic downturn and potential impact on jobs through the region is more widely felt."

After losing a job, the inclination may be to stick with the plan that's familiar, but Mr. Gibbs pointed out that employer-provided plans "are designed for one size fits all" and may not make sense once an individual is responsible for the premium. "Everyone is going to be paying for benefits they don't need."

For example, a single man does not need a maternity benefit in his insurance coverage. Similarly, a former company's prescription plan may include a more extensive formulary than you need. A more limited selection may reduce costs without losing coverage of the drugs you use.

There is a downside to individual plans. While employer group plans accept everyone, individual plans do not, and a pre-existing medical condition may disqualify an applicant. In those cases, COBRA may be the only alternative, although the rest of the family may still get an individual plan that saves money overall.

"That way, at least you've isolated that person through the COBRA plan, and then you can get a less expensive plan for the rest of the family," Mr. Gibb said.