How COBRA subsidy would be extended under Sestak bill
Posted on 27 October 2009
Permanent URL of this article: http://retirementrevised.com/money/how-cobra-subsidy-would-be-extended-under-sestak-bill
Rep. Joe Sestak (D-Pennsylvania), introduced legislation last week that would extend the federal subsidy of COBRA health insurance benefits. Under the original subsidy passed earlier this year, the government provides a 65 percent subsidy of COBRA benefits for nine months for people who lost their jobs between Sept. 1, 2008 and Dec. 31, 2009.
Here are details on how Sestak’s bill would extend the subsidy, quoting directly from Sestak’s press release 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 benefit has been especially important to older workers who lose their jobs or forcibly retired early but are too young to qualify for Medicare.
Sestak is seeking to oust Sen. Arlen Specter in Pennsylvania’s Democratic primary next year.
Here’s the full text of Sestak’s bill.
Click here to learn more about finding assistance with the current COBRA subsidy.
October 27th, 2009 at 7:58 pm
If they would extended the the eligibility for Cobra to 24 months I would quit my job. I am 64 years old and my wife is 63. If I could have the access to insurance I would move aside to open a position for one of the unemployed.I am only working so I have access to insurance. It would cost the government nothing to extend the availability. If I quit then I don’t get the subsidy.It doesn’t cost my employer anything as I pay the premiums plus 2 percent for their administration cost.
October 30th, 2009 at 4:56 pm
Hi is there any way that i can get an e mail if they extend cobra 65% past the nine months, come dec 1st i cannot pay cobra regular price 1300.00, my family and i will have no insurance, please let me know when and if it get extended, thanks
November 2nd, 2009 at 8:55 pm
I hope the can be passesince a third of my unemployment would be used for cobra I am now 55 and hate to drop coverage but…..
November 2nd, 2009 at 8:56 pm
I hope the can be passesince a third of my unemployment would be used for cobra I am now 55 and hate to drop coverage but…..!
November 3rd, 2009 at 2:23 am
The Cobra extension for my family has been a godsend. As of December 1, 2009 my premium for monthly coverage goes from $400.00 to $1200.00 per month. I only receive $1800.00 per month in unemployment benefits.
I hope to return to work as a business development manager for an interior construction firm. But no one is hiring now.
I hope by May 2010 there will be many interior construction firms looking to hire again.
Rep Joe Sestak, we really need this Cobra 6 month extension, our ability to keep our health coverage depends on it.
November 5th, 2009 at 6:21 am
Tim Satkus -
The subsidy only applies to terminated employees. If you voluntarily leave employment, you are responsible for the full COBRA amount. Just FYI.
November 5th, 2009 at 9:22 am
I’m 53 yrs. old, been laid off from medical sales job since February. Definitely would like to see the Cobra subsidy extended. I’m lucky in that I only need to have coverage for myself. The subsidy makes the difference in paying $190/month vs $550/month. On unemployment of $1,600/month that is a crucial difference. I’m looking into buying health insurance if this subsidy does not get passed by Congress, but I’m sure at my age it won’t be cheap!
November 5th, 2009 at 1:38 pm
I am praying SO hard that COBRA gets extended…It made me sick that we would have to come up with the full COBRA amount starting December 1st…$701.00 am month. when we only get $1856.00 a month. We do not qualify for subsidized medical coverage and my husband has a medical condition that we have to have medical coverage for. December is already going to be a rough month for Christmas but having to pay the full amount for COBRA is really going to hurt christmas alot more…not to mention just reagular living expenses we all have.
If we are going to offer all of these other extensions and medical coverage is so imprortant to predident Obama then don’t you think this would be high on his to do list??
WE NEED A COBRA EXTENSION NOW!
November 6th, 2009 at 12:34 am
The COBRA subsidy has been a godsend for me. I have multiple health issues and cannot afford the huge COBRA cost without it. I still have not found a job and I don’t know how to afford my medications, mortgage and utilities on my unemployment unless it is extended.
November 23rd, 2009 at 9:35 pm
I am not old enough for Medicare and have been out of work for 12 months. My only income right now is unemployment of $1900. a month. My cobra payment as of Dec 1 is $673. and I can’t afford it, and I have some medical issues and with the medications I do not qualify for any insurance policies. So I don’t know what I will do. I need medical insurance and just can’t go without.
December 14th, 2009 at 4:04 pm
It is Dec 14, and there is no word of the extension of the COBRA subsidy. My former employer, either through over site or kindness has paid my subsidy for December. But come January 1, my premium goes to $1,800. No way can i afford that. According to all these similar web-letters there will be a huge amount of people dropping their insurance. The choice is, food, rent, health insurance.
January 15th, 2010 at 12:22 pm
I am 672 years old and have been laid off since Dec 2008. I have been on Cobra since then. It runs out May 24th. I wanted to know if the Cobra will be extended from 18 to 24 months soon and since I live in California am I eligble for Cal Cobra which is 36 months.
We need to do something soon. I would hate to stop coverage since I am so close to Medicare..
January 15th, 2010 at 1:07 pm
Paul,
Here’s a link to info on the final bill that was approved by Congress:
http://retirementrevised.com/money/congress-approves-extension-of-cobra-subsidy
And here’s a link to a page with info on how you can get free counseling assistance with your COBRA:
http://retirementrevised.com/health/where-to-go-for-assistance-and-info-on-cobra-subsidy