Health Insurance Expert On COBRA Subsidies

USA Today reported Thursday that thousands of laid-off workers might not qualify for federal COBRA subsidies offered under the federal economic stimulus package because they worked for a small company that doesn’t provide the coverage or their former employer has gone out of business.  Under the federal stimulus package, the government will subsidize 65 percent of the total COBRA premium, for up to nine months, for people who are involuntarily laid off from their jobs or have their hours reduced to the point that they no longer qualify for benefits. (The subsidy also applies to family members covered under an employee’s group plan.)

The White House estimates more than 7 million unemployed workers will qualify.  So, why are thousands being left out in the cold—without coverage?  According to Nancy Metcalf, a health insurance expert at Consumer Reports, one reason is practicality: it was lot easier to temporarily subsidize COBRA than to restructure and subsidize the flawed individual insurance market.

For more, see ConsumerReportsHealth.org.