Employee Health Care
Health-Care Subsidy for the Unemployed
Get extra help with COBRA coverage.
From Kiplinger's Personal Finance magazine, May 2009
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Most people who lose their job can keep their former employer's health-insurance coverage through a federal law called COBRA, but they must pay steep premiums. The stimulus provides a 65% subsidy to help cover COBRA costs for up to nine months.
To qualify, you must be laid off anytime from September 1, 2008, through December 31, 2009. Contact your former employer to get the subsidy; you'll then pay 35% of the premium, and your former employer will pay the remaining 65%. If you were laid off in September or later but didn't originally elect COBRA, you'll have a second chance to sign up. The subsidy ends if you find a job and your new employer offers health-care coverage or if you become eligible for Medicare.
The new law, however, does not extend COBRA eligibility. You can qualify for COBRA health benefits for up to 18 months after you leave your job, no matter when you start receiving the subsidy. The law applies only to firms with 20 or more employees and doesn't apply if the company stops offering health coverage entirely.
See More From the Stimulus Guide
The New Stimulus Tax Credit
This tax break puts up to $400 in your pocket.
New Car Sales-Tax Deduction
Car buyers have till the end of the year to grab this above-the-line deduction.
Better Benefits for the Unemployed
Qualified filers get an extra $25 a week.
New Homebuyer Credit
Take up to 10% off your purchase price.
AMT Tax Relief
Taxpayers get a one-year fix on the alternative minimum tax.
College Aid Gets Fresh Funding
Rather than introduce big new ideas, this bill mostly replenishes underfunded programs and increases amounts available to families.
Reader Comments (1)
Posted by: angryAboutLoopHoles at 04/23/2009 02:38:38 PM
This subsidy does nothing to help people who get laid off by an employer...and then is asked to work on a part time basis with no benefits and no guarantee of hours? When a person is laid off in this economy they grasp at anything to stay afloat - a shot at a few hours a week income is better than nothing. Finding out three months later after getting the runaround from the company's HR people that anyone who decided to take the hours AFTER being laid off will not qualify for this subsidy is just wrong. When you elect to work rather than live on unemployment you should not be penalized, especially when working gets you a lot less money than unemployment would.