COBRA Health Care Subsidy Extension Sought December 3
While Senators continue to debate on the current administration’s health care reform policy, there seems to be another health-care related concern that merits government attention.
Last year, quite a number of Americans across various industries and at one time ensconced at various levels in the corporate hierarchy found themselves suddenly without jobs. While such an occurrence has a spider-webbed impact not just on the life of the individual concerned but on the lives of his or her family, there is one important aspect that will undoubtedly be affected — health care coverage.
Someone who is out of a job will most definitely find it difficult to pay for health care premiums. In order to assist those who find themselves involuntarily unemployed, a federal subsidy was passed in February this year. Under the Consolidated Budget Reconciliation Act (COBRA) unemployed workers can temporarily continue enjoying health care coverage at their former employer’s group rates; however, even at the special rates under COBRA, health premiums can still cost as much as more than a thousand dollars a month.
The economic stimulus package granted workers who were “involuntarily terminated” from September 1, 2008 until end of this year a subsidy to help defray premium costs for a period of nine months. Those who qualified for the program pay only 35% of the COBRA premium; the remaining 65% were covered by their former employers, who were then reimbursed by the government through a payroll tax credit.
Time is running out for those who took advantage of the program early on, however; the nine months for those who signed up in March ended in November, but there are those who still have no way of being able to afford the premiums.
A bill has been sponsored in the House of Representatives as well as the Senate, seeking to extend the subsidies from nine to fifteen months. If the extension does not happen soon enough, there may be an increasing number of families whose COBRA coverage will be cancelled and who will have to face giving up health care. The COBRA premiums reportedly cost more than 80% of the average national monthly unemployment insurance benefit.
Tags: cobra health care, health care, health care insurance, health care subsidy
Troy Dec 3
Those who lost their jobs prior to the September 1, 2008 eligibility cut-off date never received any assistance with their COBRA premiums. Many if not most of those same people are not even eligible for COBRA now because their 18 months of coverage has expired. Even those who were lucky enough to receive the subsidy in the first place are starting to loose their coverage and are joining the estimated 50 million uninsured.
According to a Harvard study, uninsured adults are 80% more likely to die from a traumatic injury than those who have insurance. Currently their are two bills working their way through congress that may offer some relief. For more information on these bills and other options to COBRA, please see our website.
Thomas Dec 4
We went from $700.00 per month to $1700.00 per month for a family of four. And if Cobra is not extended than it will be virtualy imposible to keep it going at that rate. Right now with two people out of work, and trying very hard to find job’s we can use the extension desperatley. I’m sure this is the situation for many Americans. And I hope some sort of resolution is in the woks soon.
Sharon Dec 4
The Government should cover all the unemployed people who were laid off during this recession – not just from September 2008 on. Workers from the private sector support everyone with our tax dollars. When we are laid off we have to pay 80% of our unemployment benefits for COBRA. This should be a non-issue. We don’t get lifetime medical like civil service workers. Government should not wait until the 11th hour to pass this bill – people are waiting and suffering….enough is enough. We can support wars and give money to other countries – what about us???????????? When do we get a lifeline???????
Sharon
Warren Dec 6
I’m one of these people – laid off on February 28th and my subsidy ran out 12/2. Both my wife and I have health problems that typically cost over $20K per year and the thought of being without insurance is frightening in the extreme. They really need to extend this progra and do it quickly.