I understand that the federal stimulus bill provides some health insurance benefits. How does that work?
The American Recovery and Reinvestment Act of 2009 provides a federal subsidy that covers 65 percent of your monthly COBRA premium for nine months, significantly reducing the cost of COBRA for Medical Security Program enrollees. If eligible for the COBRA subsidy, your former employer will pay 65% of the premium upfront, and offset that expense with a tax credit. You will be liable for 35% of the premium. If you are eligible and enrolled in the Medical Security Program (MSP), you can then submit proof of payment to MSP and be reimbursed for 80% of the amount you have paid, thereby reducing your portion of the monthly premium to 7%. For example, if your monthly COBRA premium for a family plan is $1,000, here’s what you’ll pay under this scenario: Your former employer will pay: $650 (offset by tax credit) You will pay: $350 (submit proof of payment to MSP) MSP will reimburse you: $280 Your final monthly premium: $ 70 The federal COBRA subsidy allows more unemployment insurance claimants a
