One of the items in the stimulus plan frequently highlighted by the media has been the 65% subsiddy of COBRA benefits. Well, unfortunately, it not as great a benefit as it might seem on its face.
COBRA, if you don't know already, is a government-statutory based plan which requires employers to provide a health insurance umbrella for the newly unemployed. It can last up to 18 months and has to cover any pre-existing conditions. Those are the good features. The bad feature is the premiums are high. For example, it's not uncommon for a family of 3 to pay around $1300 a month.
That's why the 65% subsidy was such welcomes news for folks like myself benefiting from the program. But what the media didn't immediately highlight was the cutoff date for subsidy eligibility. You only qualify if lost your job on or after September 1, 2008.
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