Federal COBRA Subsidy Set to Expire

Since March 2009 the federal government has offered a very generous subsidy to help workers who involuntarily lost their jobs maintain COBRA health insurance coverage. A brief explanation: COBRA is the requirement that workers be allowed to continue their employer-sponsored health insurance coverage for up to 18 months after leaving their job, but the difficulty is that the employer no longer contributes to the premium. And it is often a rude awakening for folks when they realize how expensive their employer-sponsored health insurance really is. The federal subsidy, part of the TARP “stimulus bill” last year, has been covering 65% of the premium for up to 15 months for those who are involuntarily terminated from their employment between February 17, 2009 and May 31, 2010. Unless it is extended, people who lose their jobs after this month will be on their own to pay COBRA if they elect to do so.

COBRA is a good option for those who, for health reasons, would have difficulty getting coverage in the individual insurance market. Those who are generally healthy, however, can usually get coverage at a much more affordable premium on their own. That’s where we come in. If you’re considering taking COBRA coverage, contact AC Forrest and we’ll provide a free, no-pressure no-obligation consultation for you where we’ll compare your COBRA option with options available on the individual market in terms of both price and benefits. You can run individual or family health insurance quotes on your own in our online quote engine.

For more information on COBRA and the federal subsidy, click here.