COBRA health insurance subsidies now available

Employers and health plans have until Saturday to notify laid-off employees of COBRA health insurance subsidies now available under the federal stimulus plan.

With unemployment at historic highs, the U.S. government has authorized $25 billion to help an estimated 7 million laid-off workers retain health coverage. The subsidies pay 65 percent of COBRA premiums and apply to those laid off between Sept. 1, 2008, through Dec. 31 this year.

On average, the typical family pays $1,069 a month to continue employer- sponsored health coverage, according to Families USA, a health advocacy group based in Washington, D.C.

For many, the cost is prohibitive, the group said, leaving millions of Americans uninsured.

Those involuntarily unemployed since Sept. 1, 2008, are eligible for the 65 percent subsidies even if they declined COBRA coverage when they first lost their jobs.

Company health plans are required by the American Recovery and Reinvestment Act, signed into law in February, to notify workers of their second chance to enroll in COBRA. If they haven't been notified, workers should contact their former employer or health plan provider.

The U.S. Labor Department has a telephone hotline, (866) 444-3272, to answer COBRA questions. Or go to www.dol.gov/COBRA.

- Bobby Caina Calvan of the The Sacramento Bee [Friday, April 17, 2009]