April 25, 2009

Health insurance subsidy for laid-off workers has holes

A new federal subsidy designed to help laid-off workers pay for health insurance could be out of reach for thousands of jobless workers because they worked for a small company or their former employer has gone out of business.

If an employer terminates its group health plan, former employees are ineligible for COBRA, says Michael Langan, principal with Towers Perrin, a human resources consultant. That makes them ineligible for the subsidy, too, he says.

Source: USA Today

March 16, 2009

New COBRA Subsidy is Effective Immediately

Filed under: General — 7macaw @ 6:45 am
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The economic stimulus package signed by President Obama on Feb. 17 (its official title is “The American Recovery and Reinvestment Act of 2009”) creates a new, temporary employer-paid COBRA subsidy.

Under the new law, effective immediately, employers are required to fund 65% of an employee’s COBRA premiums for up to 9 months.

Source: San Fernando Valley Business Journal

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