Merry Christmas, unemployed: COBRA help extended through February
Filed under: Insurance, Health, Insurance - Health Insurance
Early Saturday morning the Senate gave unemployed persons a Christmas gift. Through a trick in legislation, unemployment benefits were extended for the long-term unemployed who were slated to lose those benefits December 31. The Senate bill also provides up to 15 months of help with health insurance benefits through COBRA subsidies. Without the legislation benefits would have ended for any unemployed who already received nine months of help with their health insurance benefits on December 31.The House of Representatives approved a six-month extension for a total of 15 months of COBRA benefits last week, so now the legislation is ready to go to the President's desk for signature.
In order to get the legislation through the Senate, Democrats had to use a trick. They attached the extension to the must-pass 2010 defense appropriations bill.
Congress in November increased the number of weeks a worker could claim unemployment benefits from 53 to 73, but the weeks had to be used by June 30, 2010. The new bill allows workers to use the weeks until Aug. 31, 2010. The deadline to apply for both federal benefits was Dec. 31, but was reset to Feb. 28 of next year. This is a short term Band-Aid. Several Democratic congressional leaders hope that additional extensions for the unemployed will be passed next year.
Now that the bill has passed both houses of Congress, the unemployed can count on the COBRA subsidy of 65% for an additional six months for a total of 15 months. Without that subsidy families would need to spend hundreds of dollars they can't afford to continue their health insurance coverage.
While a company must provide continuing health insurance for 18 months, and in some cases up to 36 months, for a person who has been laid off plus his family members, the company is not required to foot the bill. In fact it can charge 102%, which includes 100% of the premiums plus 2% for an administrative fee.
For example, if the insurance premium for the family is $900, the government will pay $585 and the family will have to pay $315. Prior to this help, insurance premiums could eat up 84% of the average monthly unemployment benefit, according to the nonprofit group Families USA. In its 2009 report, Families USA found that in nine states, COBRA premiums exceeded unemployment compensation. Because of its price, many people can't afford to take advantage of the COBRA safety net.
Health insurance costs are determined on a state-by-state and company-by-company basis, so the value of the government's help depends upon the health insurance premium your company actually pays for you and your family. Most people pay only a small percentage of the cost of their health insurance coverage from their employer and have no idea what it would cost if they had to pay the entire premium. The actual insurance premium will depend on what your company has negotiated with the insurance company that carries its health insurance benefits.
Lita Epstein has written more than 25 books including Surviving a Layoff: A Week-by-Week Guide to Getting Your Life Back Together and Working After Retirement for Dummies.
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Reader Comments (Page 1 of 4)
12-21-2009 @ 8:32AM
MrDoughnut said...
God Bless those that passed the bill for the unemployed who would of rather had a good job.
Reply
12-24-2009 @ 8:25PM
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12-21-2009 @ 2:59PM
Mad-In-Texas said...
Nice to know the unemployed have even more incentive to NOT find a job. Must be nice to pay less for insurance then those of us that work 40+ hours a week. If you were laid off in the past month or so - I can appreciate the need for help. But for those that have sat around for 9 months praying for an extension...your prayers are answered. Merry Christmas. You can now sit around for 6 more months while the rest of us pay your bills
Reply
12-24-2009 @ 5:35AM
Mary said...
I hate to burst your mindless little bubble Mad. Not all people sat around waiting for the extention. My husband worked for the same company for 31 years, was let go in Feb. At last count he had filled out 274 applications and was called back for only 15 interviews. For each job there were a minimum of 50 applicants, so I am guessing they were not sitting on their backsides waiting for the extention either. Our full pay COBRA was 92% of his unemployment check. Does your small mind really think we enjoyed this? He finally went back to work 2 weeks ago and hasn't stopped smiling. So while I will thank you for helping us out (the first and hopefully only time) when we needed it, keep your snide, rude and false comments to yourself.
12-24-2009 @ 1:57PM
Mad at U in Texas said...
Your an idiot. I wonder how YOU would feel if you were in the same situation. Don't feel so secure in your situation. NO job is secure. Your future isn't written in stone. You may have great benefits now, however, that could change at anytime. Be a little more compassionate towards people. Because YOU might need someone to feel compassion towards YOU. And again, your an idiot.
12-24-2009 @ 9:38AM
Donna said...
I have worked steadily since I have been 16 years old. I lost my job in 2008, finally was hired for three months in which the job turned out to be nothing as explained to me and then fired for not having the necessary skills for the bait and switch actual postion. I am healthy but do not qualify for private health care and have exhausted my COBRA in which I did not qualify for the COBRA assistance since my COBRA started two months before the qualifying date. Each position I apply for has over two hundred applicants. I am attending classes (which I can not afford) and now have an insurance plan through the state with an unattainable deductible that costs as much as the COBRA plan did that at least paid for some of my expenses. I worked for my last employer for 14 years and was laid off due to their incompetence to remain viable. IT IS NOT MY FAULT that I am in this position and RESENT the insensitive comments made by anyone! You are probably the same type of person who stated to me when I tried to follow-up on an application "If you do not receive a call within the next week you were placed in the no pile" I at least have compassion to refrain from wishing that you find yourself without your job and see how it is for the rest of us unfortunate to be laid off. What goes around comes around though buddy. Be careful about what you say to others.
12-24-2009 @ 10:50AM
MrDoughnut said...
There are no jobs that pay the bills if there was the employer makes the decision to hire not the applicant.
So until the employer hires the unemployed then you can keep paying UF loser!
12-24-2009 @ 11:33AM
Bob C said...
I agree completely.......
Now hold on to your wallets while they turn us upside down and tax us to death.
I wanted to go to Canada in the late 60s, It's looking better and better each day!
12-24-2009 @ 1:42PM
marci said...
in response to your comment. I have been unemployeed for 6 months now, which was from a job that I held for almost 7 years. Your comments are very uneducated and resentful towards the wrong people. Not everyone who is unemployed and collecting and on COBRA is just sitting at home on their a!! ... carefull one day you might be in this position, god forbid. Merry Christmas.
12-24-2009 @ 4:34PM
Scott S. said...
This bill is the difference between losing or not losing my home. FYI, this has NOTHING to do with unemployment insurance. I do not get unemployment because I am on long-term disability after having major surgery. I would love nothing more than to be able to return to work, but can't due to severe physical restrictions. After being out for 6 months, my employer informed me I had been terminated as per their policy. COBRA has enabled me to continue paying for and receiving Health Insurance through my former employer. The ARRA, which was passed this spring, enables me to continue to purchase insurance roughly at the same rate per month as when I was employed. Without it, my premiums went from $223 per month up to $846!! The only income I get is my monthly disability check, which is only 60% of my pre-disability income. After paying my insurance, medical co-pays, prescriptions, and utilities, the higher rate has made it impossible to cover my mortgage and other loans. So yes, for me, the continuation of the COBRA discount is the difference between just getting by and forclosure. Don't be so quick to criticize something you obviously know little about. The reforms to COBRA and the ARRA are among the very few things that this administration has truly gotten right.
12-24-2009 @ 4:45PM
MRC said...
kiss ass
12-24-2009 @ 5:23PM
mary said...
You do not understand how COBRA works. You pay way less as an employed worker than those paying for COBRA. On COBRA you pay for that amount your company (employer) paid, what you yourself paid (if anything) plus the administration fee. That is so very much more. How could you read the article and not figure this out. Most, and I mean MOST people cannot afford COBRA, it is just too expensive.
12-24-2009 @ 7:41PM
fred said...
You're a complete dick! Try living in the Midwest where in some counties, the unemployment rate is above 15%. Most of us want to find decent paying jobs, even the minimum wage jobs are dried up. Many of us have been working temp jobs 3-4 days a week just trying make ends meet vs. sitting around on our fannies. I've worked since the age of 16 years old and have never been unemployed until now. So thanks for paying for my unemployment because I know I've paid for someone else's over the years. Hope you get a lump of coal for Christmas! And, I pray that YOU don't lose your job.
12-23-2009 @ 5:08PM
Lorraine said...
I'm so glad u people have nice cushy jobs with health insurance. I guess the rest of us who are not so fortuntate should live on the street. if I were you people i would pray real hard that your great jobs complete with health insurance do not get outsourced to india
Reply
12-24-2009 @ 8:43AM
melinda said...
COBRA as a benefit???? OMG who's BS'ing who here? No one, ESPECIALLY the unemployed can afford COBRA.
Reply
12-24-2009 @ 8:10AM
Linda said...
I have been on unemployment for almost a year. It is very hard to find a job. You go to alot of interviews and they don't call back. There is to many people out looking for jobs that your chances are very slim. Everyday is very stressful for the people that are on unemployment they don't know if they can pay there mortgage or all there bills. I don't have health insurance because i can not afford it. I have high blood pressure I have been off my medicine for almost a year. It is not a vacation to be on unemployment so people should keep there options to there selves.
Reply
12-25-2009 @ 2:12AM
keith said...
this is for Linda, if you have been off your meds there is help out there. here are 2 places to check with. 1. Togehter R Access
Customer service 1-800-444-4106 and 2. Daiichi- Sankyo @ 866-268-7327...Between these 2 one should be able to help you..tell them you can not afford your meds and they will instruct you on what you need to do. I sure hope you get this and that it helps you. Happy New Year.
12-24-2009 @ 8:17AM
MyKisa said...
your government has turned on you....and you just stand there
Reply
12-25-2009 @ 3:28PM
wm said...
Cobra is hugely expensive and the support given by the gov to defray some cost essential notwithstanding i am angered that the support is ONLY provided to those who are fired or layed off I quit my job because of the stress involved and have been diligently attempting to find new employment to no avail I am forced to pay the FULL amount of my Cobra with no governmental support despite my having paid significant taxes during the past 40 years of working
It is insulting and discriminatory for the gov to limit the extension of Cobra subsidy to one segment of the American work force though we have ALL paid exhorbitant taxes during our work lives Give me back my damn taxes paid and I will use those funds to defray the cost of the ridiculous premiums for which i am forced to pay precluded from gov subsidy because I quit as opposed to having been fired or layed off
Reply
12-24-2009 @ 12:37PM
jim hughes said...
working with idiodic union slackers that are lunchpal rebublicans, they feel unemployed are there because they deserve it, and don't realize with there skillsets they would be less than unemployed, they would be untrained, uneducated, and unable to hold down a job at wal mart.
Reply