The nine-month COBRA health insurance subsidy, which helped an estimated 14 million laid-off workers in 2009, is due to expire on Dec. 1.
Beginning last March, the American Recovery and Reinvestment Act of 2009 provided that workers who were involuntarily terminated bfrom Sept. 1, 2008 through the end of 2009 and had been previously insured became eligible for a subsidy or government assistance in paying premiums that covered 65 percent of the cost of continuing that worker’s health insurance.
This left only 35 percent of the original premium to be paid by the workers themselves.
According to the Foundation for Health Coverage Education, most of those affected by the COBRA stipulation began receiving the subsidy in March, meaning the subsidy’s expiration date of Dec. 1, 2009 is rapidly approaching, after which they will have to begin paying their whole monthly premium.
“For the average laid-off worker, this means a monthly payment jump from $374 to $1,068 for health insurance," said Phil Lebherz, the FHCE's executive director/founder. "With an average national unemployment benefit set at $1,278 per month, these participants need to look at other options available to them."
"The good news is that by researching other government options, checking on eligibility for public programs for children under the age of 19 and visiting websites for organizations that help lower drug costs, we’ve discovered that there are stop-gap measures in place to help families keep their coverage," he said.
The coverage-saving measures include the Health Insurance Portability and Accountability Act (HIPAA), high deductible plans, comprehensive programs for children and coverage for pre-existing conditions.