Posted: 04/18/09
COBRA is a program created under the Consolidated OmniBus Reconciliation Act to prevent employees who are between jobs from experiencing a lack in health insurance coverage. As part of the economic stimulus package passed in February 2009, the COBRA subsidy provides 65 percent of COBRA premiums for nine months to employees laid off between September 2008 and December 2009. The subsidy is available to those laid off from companies with 20 or more workers. Employees laid off from small companies must rely on states' "mini COBRA" laws to determine if assistance is available. Continued coverage is available for fewer than the nine months designated in the subsidy in six of the states. Nine states have no "mini COBRA" laws at all; laid off workers from small companies in these states are not even eligible for COBRA, much less the 65 percent subsidy.
Those laid off from small firms may consider a short term health insurance plan to provide coverage while searching for employment.
Related Links
US News & World Report: Can You Count on a COBRA Subsidy?
