Affordable Health Insurance

According to the article “An Extended Subsidy for COBRA Health Coverage” by Kimberly Lankford on The Washington Post’s website, Congress has extended the COBRA Subsidy from 9 months to 15 months.  This is great news for those whose subsidy was coming to an end, still unemployed and worrying about finding affordable individual health insurance.

Last year’s stimulus package originally set up the COBRA subsidy for those who lost their job between 9/1/08 and 12/31/09.  It covered 65% of their COBRA health insurance premium for up to 9 months.  While this was extremely helpful to many, the 9 months is coming to an end for some and unemployment is still up.  With the newly amended law that occurred in late December, these individuals have another 6 months to find relief.

If you were receiving the subsidy, there is nothing you need to do to continue receiving it.  You continue to pay the 35% to COBRA and your former employer is reimbursed by the government for the remaining 65%.  Once your 15 month subsidy expires, you will be responsible to pay for 100% of the premiums in addition to an administrative charge.  COBRA coverage generally only lasts 18 months.

With health care reform just around the corner this may change as well, in addition to changes in medicare supplement plans. It’s important to ensure you have the most up to date information on COBRA and other government health insurance programs.

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