House passes COBRA subsidy extension bill

[Duer 157099]

Source: BusinessInsurance.com

WASHINGTON—The U.S. House of Representatives overwhelmingly approved legislation Wednesday that would extend the federal subsidy of COBRA health insurance premiums for employees who are involuntarily terminated.

Embedded in H.R. 3326, a measure appropriating funds for the Department of Defense, the nine-month, 65% premium subsidy would be extended by six months to a total of 15 months. It would apply to those who lose their jobs through Feb. 28, 2010. Under current law, employees who lose their jobs after Dec. 31 are ineligible for the subsidy.

The measure, approved on 395-34 vote, also would provide an additional six months of subsidized coverage for beneficiaries whose nine-month COBRA premium subsidy has run out.

In addition, the legislation would give beneficiaries whose subsidy ran out and who didn’t pay the full premium a second chance to opt for coverage. For example, a beneficiary whose nine months of subsidized coverage ran out Nov. 30 and who didn’t pay the regular unsubsidized December premium could pay the 35% premium share in January and receive coverage for December.

Read more: http://www.businessinsurance.com/article/20091216/NEWS/912169994

[Larkspur]

1. Wonder if Lieberman will filibuster this bill too

We know the Repukes will

[Duer 157099]

2. It's part of the Defense Spending Bill - I doubt it will have any trouble passing n/t

[iamjoy]

5. Nah, This One Is Popular

Without the subsidy, COBRA is usually so expensive, that the people who take it tend to be ones who know they have health problems. So, a greater proportion of COBRA participants vs. Active participants use the insurance/file claims. This drives up costs for insurance companies and groups (employers). With a subsidy, some healthy people may elect to keep the employer coverage, especially if the subsidy makes the COBRA premium roughly the same (or even less expensive) as they paid before getting canned. The COBRA Subsidy helps some Americans hit by the recession keep health care, but it is also an indirect transfer of money from the government to the insurance companies. Of course some Republicans (I now include Lieberman in this category) will like it.

[still_one]

3. I wonder how many people who don't have a job can afford that /nt

[MineralMan]

4. More than could afford to pay the full cost, I'm sure.

[housewolf]

7. Here's the difference -

Full cost of my COBRA is about $360/month

With the subsidy, it's about $125. Makes a huge difference. I NEED the insurance.

[DavidDvorkin]

13. It's making COBRA manageable for us

It's still painful, but without that subsidy, it would be impossible.

[wordpix]

14. it's affordable with the subsidy but without it---forget it

Most people can afford it with the gov. subsidy and unemployment insurance income.

[housewolf]

6. Thank you, House of Rep, Thank you! Thank you! Thank you!

This is a life-saver

'Course now we gotta get the Senate to take action on it before they leave for their break

[wordpix]

15. +1 geesh, it's amazing what some REAL Dems can do with a majority

[Blue Diadem]

8. This is good news...now for the senate to get this passed.

It's personal for me. DH was laid off in Feb. We had to pick up Cobra in April and we were only able to afford it due to the subsidy. Our 9 month subsidy runs out at the end of this month unless there is a continuation. I'm 7 weeks post major surgery for a precancerous condition. Without Cobra and the subsidy, I wouldn't have been able to afford the Dr., tests or surgery.

[superconnected]

10. Best wishes on your recovery!

[Blue Diadem]

11. Thank you!

[valerief]

9. Something else for the Senate to shit on. nt

[wordpix]

16. they'd better not---grr

[NYC_SKP]

12. kick!!! nt