Unemployed Workers Taking Advantage of COBRA Subsidy

[Omaha Steve]

http://www.laborradio.org/node/11770

Unemployed workers have been signing up in record numbers for a federal subsidy plan intended to make health care more affordable for the laid-off. Known as COBRA, the plan helps laid-off workers continue employer health coverage for up to 18 months after leaving a job. A portion of the economic stimulus plan has made COBRA more affordable by subsidizing 65 percent of premiums for individuals laid off between September 2008 and the end of this year. According to human resources consulting firm Hewitt Associates enrollment in COBRA doubled between March and June as compared to September through February.

[aquart]

1. 65%? Doesn't that tell anyone with a brain that cobra premiums are TOO HIGH?

[petersjo02]

2. Yes, they are.

If you choose to go on COBRA, you'll pay the going rate that the company you left is paying for a single policy. Nobody claimed it would be cheap--just available. A subsidy program will help. I paid around $9,000 for 18 months of COBRA after I retired over five years ago.