will they be extending the stimulas break on cobra medical insurance for 2010?”
Employees who are laid off are entitled to a continuation of health benefits. The laid off employee pays the premium for the coverage to be continued. Good idea in theory. Terrible in practice. The premiums for “COBRA benefits” are often so expensive that it is impossible for a laid off worker to afford such coverage. By personal experience, after a lay off, a friend of mine continued her family coverage for her and two children for over $900 per month. Another problem is that the law puts the administrative burden on employers. Often employers need to hire consultants to keep pace with this responsibility adding yet another layer of costs. To address this coverage gap, lawmakers in the House proposed that part of the premium be subsidized as a part of the economic stimulus package. This provision was opposed by Senate lawmakers. But, the two bodies have agreed to a subsidy as a part of the final agreement reached in committee on February 11. The subsidy will apply retroactively and is
If you were laid off after August 31, 2008, and before January 1, 2010, you will be responsible for only 35 percent of your COBRA payment. —————- In our February special layoff issue, Personal Finance focused on alternatives to paying enormously high COBRA payments. COBRA enables laid off workers to retain their health insurance through their former employer for up to 18 months after they leave the organization. A Families USA study shows what you probably already know if you’ve been laid off. The health advocacy group found that in 41 states, average COBRA payments amount to more than three-quarters of the average unemployment benefit! Well, finally – some good news. The recently enacted American Recovery and Reinvestment Act of 2009 (stimulus package) offers relief for laid-off workers by offering a 65 percent federal subsidy on COBRA premiums for a period of 9 months. If you were laid off after August 31, 2008, and before January 1, 2010, you will be responsible for only 3
