Thursday, February 19, 2009

New Stimulus Subsidy for COBRA Premiums

Workers who lose their jobs can continue health care coverage under COBRA. However, they must pick up the full cost of the insurance plus a 2 percent administrative fee. The high cost of the premiums has deterred most workers from exercising the continuation option. Under the recently passed stimulus plan, the government will now subsidize 65 percent of the premiums for up to 12 months after termination.

To be eligible the loss of employer health coverage must result from involuntary termination and "must occur during the period beginning September 1, 2008, and ending with December 31, 2009, and the qualified beneficiary must be eligible for COBRA continuation coverage during that period and elect such coverage."

This video from the Wall Street Journal discuss the subsidy. Unemployed? Help Paying Cobra Benefits is on the Way

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