COBRA Subsidy Expires
Paul June 07, 2010
In February of 2009, President Obama created a 787 Billion Dollar stimulus program intended to help Americans during our present recession. As part of the stimulus bill a 65 percent subsidy was started for Americans who were involuntary terminated from their jobs. The subsidy was extended in April, but expired May 31st.
Americans that lose their job after June 1st will have to pay the entire premium for COBRA coverage. According to Families USA, a consumer advocacy group, the monthly premium alone can eat up to 84 percent of a person’s unemployment check.
The extension of the COBRA subsidy was rejected by House Democrats to reduce the costs of a new jobs and tax bill that proposed extending the subsidy through December 31st. The extension would cost 7.8 Billion Dollars according to a report by CNN.