Your Family Health Insurance COBRA Subsidy Will Expire Soon
Your Family Health Insurance COBRA Subsidy Will Expire Soon
The unemployment rate is near or above 10 percent. Many of those unemployed people have families. Since most Americans continue to receive health insurance through an employer, that means that a family can become uninsured if a parent loses his or her job.
COBRA is a federal program meant to help. It allows you to maintain your former employer's health plan. This is especially good for those with pre-existing conditions, because they have been previously unable to buy coverage on the open market.
Unfortunately, COBRA insurance is very expensive; even more so for families. Employers pay part or all of the premium for current employees. When you are no longer employed by them, you are responsible for the entire cost of your health insurance plan. In addition, an extra administrative fee of one or two percent is often charged. Unable to afford it on unemployment compensation payments, many people drop their coverage before the maximum 18 months they are eligible.
As part of last year's economic stimulus package--intended to get the United States out of recession--passed by the Obama administration, a partial subsidy for COBRA health insurance was included for people who lose their jobs from May 31st. It subsidizes 65% of the individual or family health insurance premium. Due to the long-term unemployment many have suffered, the subsidy has been continually extended by Congress.
Now, the subsidy will finally end. Those who applied for the benefit as soon as it was available in March 2009 just received their final subsidy. Although the economy is improving, the unemployment rates is still high. Those who have found jobs may be in less prestigious positions without health benefits. Families may be unable to afford the coverage if they have to cover the full cost.
However, there are still solutions. Provisions in the new healthcare reform law will make it easier for families to buy affordable health insurance plans despite the pre-existing conditions of the adults or the children. They can also choose less generous plans with higher deductibles in order to get lower rates.
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About the Author:
Yamileth Medina is an up and coming expert on Family Health Insurance and Healthcare Reform. She aims to help people realize that they can find a quality health insurance plan right now. Yamileth lives in Miami, FL.