Talk Radio News Service: News, Politics, Media

By Suzia van Swol-University of New Mexico, Talk Radio News Service
April 18, 2009 will mark the deadline for employers to inform laid-off employees that they are eligible for “mini-COBRA.”

Many of the unemployed can now receive 65% coverage for their health insurance premiums if they have been laid off between Sept. 2008 and Feb. 2009, regardless of company size.

Kathleen Stoll, Deputy Executive Director and Director of Health Policy for Families USA, stressed the importance of the new provision.

“The average monthly COBRA premium for a family is about $1,069 and if you compare this to the average monthly unemployment check, which is about $1,278, you see a problem,” said Stoll.

COBRA originally only applied to employees laid off from companies with 20 or more workers, unless their respective state had passed legislation to cover smaller companies as well. Under President Obama’s American Recover and Reinvestment Act, COBRA is made possible for smaller companies. Families USA, a progressive non-profit consumer health-care advocacy organization, released today’s report to outline the specifics of these new laws.

The Consolidated Omnibus Budget Reconciliation Act, known as COBRA was signed by President Ronald Reagan in 1985. It gives employees access to continued health insurance after leaving employment. Before COBRA, laid off workers had no help covering medical expenses, and Stoll said that this made healthcare very expensive.

For information on COBRA, go to www.dol.gov/ebsa/COBRA.html