Bill to extend COBRA health subsidy introduced
Posted on 23 October 2009
Permanent URL of this article: http://retirementrevised.com/money/bill-to-extend-cobra-health-subsidy-introduced
Rep. Joe Sestak (D-Pennsylvania) introduced a bill this week that would extend the current federal subsidy of COBRA health insured benefits.
The health care subsidy was one of the most useful provisions of the economic stimulus bill passed earlier this year, but it didn’t go far enough. The bill provides a 65 percent subsidy of COBRA benefits for people who lost their jobs between Sept. 1, 2008 and Dec. 31, 2009. COBRA allows you to continue on your former employer’s health insurance plan for up to 18 months, but it’s expensive; under normal circumstances, you pay 100 percent of the premium. So the subsidy provided an important boost to people who really need it while we wait for broader health insurance reform to get passed.
The subsidy is now expiring for many people who have depended on it, and the Obama Administration says it supports an extension as part of a broader set of steps aimed at bolstering the safety net for unemployed workers.
October 26th, 2009 at 5:27 pm
The Bill you referenced states “To extend temporarily the 18-month period of continuation coverage under group health plans required under COBRA continuation coverage provisions so as to provide for a total period of continuation coverage of up to 24 months”…where do you see>”extend the current federal subsidy”? I am interested in learning that a current unemployed enrollee will get an subsidy extension to 18 months in lieu of 9 months…can you check on this? Thanks for tracking this very important bill!!!
October 26th, 2009 at 5:36 pm
Mark,
Quoting from Rep. Sestak’s announcement on the bill:
“The bill extends COBRA benefits in three main ways. First, it extends by 6 months– from 9 to 15 months– the total allowable time an unemployed worker can receive COBRA premium assistance. This will allow workers who enrolled in the program in February to continue on until at least May 2010. Second, it extends this assistance to individuals who are involuntarily terminated between January 1 and June 30, 2010. Third, it extends eligibility for traditional COBRA coverage an additional 6 months, from 18 to 24 months, for those terminated at the beginning of the economic recession in 2008. No extended COBRA premium assistance or extended COBRA benefits would extend beyond December 31, 2010.”
The full text is here:
http://sestak.house.gov/apps/list/press/pa07_sestak/091023_WorkerEmergencyCare.shtml
November 6th, 2009 at 12:03 pm
Mark,
The President just signed a bill extending unemployment benefits (Nov 6th) but the COBRA extension was not a part of the announcement. Do you happen to know if this means that the proposal is dead or is this a completely separate bill?
Thank You
November 6th, 2009 at 6:00 pm
Ed,
It is separate legislation still under consideration in the House and Senate.
November 9th, 2009 at 4:55 pm
I am currently using the COBRA plan with the government subsidy. It is due to end next month. Coincidentally, I am also being asked to respond to the open enrollment by Dec. 4. My decision regarding the open enrollment changes will be very different if the extension of the subsidy is passed. I’m not sure what to do as Dec. 4 is fast approaching.
Thanks.
November 10th, 2009 at 5:00 pm
Hi….My office was just closed down I did receive a 60day retention package then on Jan 5th I need to sign my severance agreement however, as it stands now the Cobra plan expires 12-31-09 when will we know if the Obama plan will be extended? thanks
November 10th, 2009 at 6:56 pm
Linda, unfortunately it’s impossible to say. Bills have been introduced in both the House and Senate; I’ll be reporting any updates as they happen. I recommend you sign up for e-mail alerts here at the site (see upper right hand part of the home page), so that you get the latest.
November 13th, 2009 at 5:25 pm
Thank you for your reply, Mark.
November 22nd, 2009 at 7:16 am
I was given a severance package in April 2008, after that ended I filed for unemployment benefits in Oct 2008 and also requested cobra and subsidy assistance. I was informed by my employer and the DOL that since I “officially” was unemployed in April 2008 that I would not qualify for the subsidy, I’m still unemployed and have depleted my savings since I have to pay over $1,200 per month for cobra. Please consider expanding the subsidy to those, like me, who are still on cobra as well as extending the 18 month limit.
December 9th, 2009 at 9:30 am
My husband was terminated from his job on July 7,2009. Since then he has been on Cobra with the help of the subsidy Obama offered. He is 62 yrs old and is working 3 part-time jobs but of course with no benefits. He just quit taking his unemployment checks when he added his 3rd job. When will his Cobra with subsidy end? We can not afford regular health insurance and he is diabetic. If we do not have insurance he will stop taking his meds. I am on disability so I have Medicare-he is the one that concerns me. DL