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.
Seems like an arbitrary cutoff date to me. I realize the pols had to draw the line somewhere but if memory serves the economy wasn't actually rolling merrily along even before I lost my job in July of last year. I have no idea if the date was the result of some political compromise or if it was part of the original language of the plan
This is not meant to sound like a pity party for myself. I'm in a lot better fiscal shape--for now anyway--than many others I read about on this board and other websites. Just wanted to draw attention to the fine print so others aren't mislead like I initially was by the news coverage