If you’ve been laid off any time since August 2008
but opted to keep your former employer’s health insurance, the federal stimulus package
might help you foot the bill for that coverage, at least temporarily. And, if you passed
up the COBRA option at the time because of the cost, the new law gives you another chance
to enroll.
Specifically, the stimulus plan provides a subsidy for up
to nine months of coverage under COBRA, the Consolidated Omnibus Reconciliation Act - the
federal law that extends employer insurance for laid-off employees, typically for 18 months.
Here’s how the subsidy works: For the first nine months
of unemployment, you will pay 35 percent of your COBRA cost and the government will pay
the other 65 percent. After that, you’re responsible for the full amount. For example,
if your family’s COBRA insurance payment is $1,000 a month, you’ll pay about $350 a month
if you qualify for the subsidy. "With a family of four, it’s a really big help," says
Allan Hoving, a 52-year-old online product manager, of Westport, Conn., who lost his
job in January. "It takes some pressure off the finances."
Health policy experts say that even if discounted health
insurance payments are a drag on your finances, try not to pass up the opportunity.
This is especially true if you don’t yet qualify for Medicare and can’t count on
finding insurance coverage elsewhere.
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