| Thousands More Workers to Benefit from COBRA Subsidy Extension |
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| International News - General |
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Laid-off workers will be able to keep their group health
insurance from former employers at a subsidized rate under a new
law signed by President Obama. Last year, the Obama
administration's job stimulus program included a COBRA subsidy
of 65 percent of the health care premium costs for laid-off
workers for up to nine months. That program was set to expire
Dec. 31, but has been extended and improved.
Before last year's subsidy was passed, laid off workers who wanted to keep their group health insurance had to pay the full employer and employee cost, plus a 2 percent administrative fee. Without the subsidy, extending benefits under COBRA cost working families as much as $1,500 a month, nearly impossible to pay without a job. The newest COBRA extension allows workers to receive the subsidy for 15 months, instead of nine and extends the eligibility period to Feb. 28, so newly laid off workers also can take advantage of the program. The program covers workers who have been involuntarily laid off between Sept. 1, 2008 and Feb. 28, 2010 from an employer with 20 or more employees. |
