This article fails to mention the COBRA premium subsidy provided by the American Recovery Act earlier this year. For those who were terminated after September 2008, the premium subsidy reduced the monthly COBRA premiums for eligible unemployed to 35 percent, from the 102 percent generally charged. The subsidy lasted only nine months, and eligibility for it is due to end this year.
This week, Congressman Joe Sestak (D-PA-7) introduced the Extended COBRA Continuation Protection Act of 2009 (HR 3930) in the House to further extend COBRA for the jobless. Extensions would be provided in three separate ways:
(1) It extends the length of the COBRA premium subsidy from 9 to 15 months.
(2) It extends the eligibility period for the COBRA premium subsidy past December 31, 2009 (which was the original cut-off), to those terminated through June 30, 2010.
(3) It extends the length of basic federally mandated COBRA from 18 months to 24 months (this has nothing to do with the "mini-COBRA" periods that may be added by individual states, and it has nothing to do with the COBRA premium subsidy).
It's a good, solid -- albeit temporary -- fix for the very difficult problem of affordable health care coverage for the unemployed, until Health Care Reform gets up and running. I just hope it makes it through the Senate more quickly than the unemployment extension legislation!
Jobless lose healthcare coverage, too
This article fails to mention the COBRA premium subsidy provided by the American Recovery Act earlier this year. For those who were terminated after September 2008, the premium subsidy reduced the monthly COBRA premiums for eligible unemployed to 35 percent, from the 102 percent generally charged. The subsidy lasted only nine months, and eligibility for it is due to end this year.
This week, Congressman Joe Sestak (D-PA-7) introduced the Extended COBRA Continuation Protection Act of 2009 (HR 3930) in the House to further extend COBRA for the jobless. Extensions would be provided in three separate ways:
(1) It extends the length of the COBRA premium subsidy from 9 to 15 months.
(2) It extends the eligibility period for the COBRA premium subsidy past December 31, 2009 (which was the original cut-off), to those terminated through June 30, 2010.
(3) It extends the length of basic federally mandated COBRA from 18 months to 24 months (this has nothing to do with the "mini-COBRA" periods that may be added by individual states, and it has nothing to do with the COBRA premium subsidy).
It's a good, solid -- albeit temporary -- fix for the very difficult problem of affordable health care coverage for the unemployed, until Health Care Reform gets up and running. I just hope it makes it through the Senate more quickly than the unemployment extension legislation!
October 28, 2009 at 1:13 a.m. ( permalink | suggest removal )