Just as a refresher, COBRA stands for Consolidated Omnibus Budget Reconciliation Act. COBRA in itself sounds very dangerous etc. cuz its one of the most poisonous snakes to be found on earth but here in the Federal context it might as well be your life line.
The Obama’s Administration Stimulus plan will have a provision which would allow laid off employees to continue their former employer’s coverage for up to 18 months. The difference is that before the passing of this bill, employees usually had to pay about 102% of the premium.
Stimulus Package COBRA
The new stimulus bill (or spending bill) is going to subsidize 65% of COBRA premiums for up to the duration of nine months. However there is a catch. The subsidy is limited to workers who were laid off between Sept. 1, 2008, and the end of this year. So its not for everybody. Government does not want to give incentives to employers to fire their workers 😉
Check out More Details On COBRA From – CLICK HERE
All in all I have mixed feelings about it. I don’t know much about what a family faces when the main income earning family member is laid off and what goes through the process. Perhaps with regards to this bill specifically more details would follow through.