You Have 48 Hours To Cash In with COBRA

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

Website helps youth say "NO" to debt

by Christina Lovato, University of New Mexico-Talk Radio News Service

A new health and financial site focused towards young adults from ages 18-34, gives resources and information that they won’t learn in school.

Anna Greenburg, the Senior Vice President of Greenberg Quinlan Rosner Research, said that younger people are suffering worse from the economic situation than older people except in regard to retirement and investment income because they don’t have any.

“Even though this recession is affecting everybody the way it affects young people has the potential impact to affect what their financial lives look like 20, 30 and 40 years from now.”

Greenburg also said that younger people are facing the highest unemployment rate out of every group.

“You got sort of a double whammy with younger people. Their both more likely to be unemployed, more likely to work part time and if you work part time, more likely to have your hours cut back and your wages cut.”

In the study “Young People: Trying to Weather a Recession” conducted by Greenburg Quinlan Rosner Research and Qvisory.org, 19% of young adults say they are unemployed or looking for work compared to only 7% of adults ages 30 and over.

The study also found that in 2008, 37% of young people reported having more than $5,000 in debt, excluding amounts from mortgages and student loans.

A new website called Qvisory.org, that was launched in October 2008, is hoping to provide resources and information for young adults that they are not learning in the classrooms.

Gina Glantz, the Qvisory Treasurer said that America’s younger generation is in jeopardy.

“They don’t feel well represented in the halls of power and they like most Americans have grown to distrust their financial institution.”

Glantz said that now more than ever young adults need guidance because they are suffering the most.

“They need trusted resources and a navigation system to help them secure their health and financial well being and have a chance at the American dream.”

Qvisory is a non-profit organization that has a $36 per year membership fee that includes services like the distribution of pre-paid cards, a COBRA (Consolidated Omnibus Budget Reconciliation Act) information center, a low-cost dental insurance program, a combination of employee assistance programs, and free telephone and online services.

“There is a no more important time for young people to find the resources and information they need to survive the situation they find themselves in,” concluded Glantz.

Hoyer criticizes Republicans at pen and pad session

House Majority Leader Steny H. Hoyer (D-Md.) stated that he testified today for full voting rights status for the District of Columbia and said they are going to ask the Supreme Court to fast track it or get it signed by President Obama or ask if it needs to be a consitutional amendment.

Leader Hoyer also had comments about the American Recovery and Reinvestment Act of 2009. He said that some have criticized the bill as not enough but twice as much as discretionary spending last year. Asked if it was large enough, Leader Hoyer said "Not sure, you can hear many different opinions."

There will be no earmarks on this bill and when asked about bipartisanship, Leader Hoyer said "Being bi-partisan does not mean lying on the floor and doing whatever they want. The Republicans have taken a political stance against the bill."

Hoyer noted that despite the fact that President Obama was meeting with the Republicans they have told their members to vote against it. He also stated that the Republicans have run up our debt to a weak economy.

He concluded the pad and pen noting that with the bill would come good things. It would bring an increase in science & technology research, pell grants and school modernization. They want to make IDA money more transparent to the American public and offer COBRA subsidies.

COBRA: Great in theory, but lousy in reality

Benefits provided by the Consolidated Omnibus Reconciliation Act (COBRA) are supposed to allow laid off workers retain their previous health insurance for an additional year and a half, however, COBRA's high premium costs have proved to be too expensive for many Americans. This outcome, in the words of Families USA Executive Director Ron Pollack, adds up to a 'tragic rouse'.

"COBRA health coverage is great in theory, but lousy in reality," said Pollack during a

"For the vast majority of workers who are laid off, they and their families are likely to join the ranks of the uninsured."

Pollack stated that paying COBRA costs on average consumes nearly 84% of a worker's unemployment insurance. According to Families USA, the national average for monthly unemployment benefits average $1278 dollars, whereas the average cost of COBRA premiums is $1069.

Pollack went on to explain that in 41 states, including the District of Columbia, family coverage premiums consume 3/4 of unemployment benefits and that in 9 of these states Cobra premiums either match or exceed the benefits.

"In Arizona, the average monthly insurance benefit is 937 dollars, compared to average Family COBRA premiums in that state of 1084 dollars. In other words, the Cobra premium would absorbs 116% of unemployment insurance income," said Pollack.

"In Alaska it consumes 132%...in Louisiana 115%, Mississippi similarly 155%, in Alabama 114%, in Delaware 105%, in West Virginia 104%, in Florida 102%, and in South Carolina it's 100%."

To counteract this situation, Pollack recommends providing subsidies for Cobra's premiums as well as temporary health safety net coverage through medicaid, steps that Pollack believes will be included in the upcoming economic recovery package.