Sunday, February 15, 2009

Obama's Stimulus package could cover 65% of COBRA health insurance payments

According to US News & World Report the Stimulus package that passed congress this week could cover up to 65% of COBRA health insurance payments for some of the recently unemployed.

What did make it into the final stimulus bill is a provision that provides a 65 percent federal subsidy for COBRA premiums for up to nine months for workers who lose their jobs. Workers laid off between Sept. 1, 2008, and Dec. 31, 2009, would be eligible, and those who were laid off since last September who had initially declined COBRA would have 60 days to elect it. The subsidy isn't available to workers whose income in the year they would receive it exceeds $125,000 for individuals and $250,000 for families. The Joint Committee on Taxation estimates that 7 million people would keep their health insurance thanks to this provision.

No comments: