In further bad news for personal incomes and the overall economy, the COBRA health insurance subsidies that have provided a stop-gap for millions of unemployed workers
will expire next week.
In many respects, the end is symbolic since the program's enrollment ended in May 2010. Extensions stretched the subsidies out for 15 months and now the last of those eligible will lose that benefit Sept. 1.[...]
COBRA, an acronym for the Consolidated Omnibus Budget Reconciliation Act of 1985, gives laid-off workers the option of paying to continue receiving health benefits through their employer for a time, but often at a price that is steep for someone who is unemployed. The subsidies reduced that cost by 65 percent.
The Kaiser Family Foundation reported the average monthly cost of maintaining COBRA coverage without the subsidy is $1,137 for a family policy and $410 for an individual. With the subsidy, the cost has been $398 per month for a family and $144 for individuals.
That means either many more people paying beyond what they can afford for insurance or joining the ranks of the uninsured. Some might be able to move over to Medicaid, putting more strain on the states. If the Super Congress was really going to be super about trying to help the economy, this subsidy would be continued.