Economic recession, job loss and your health insurance
With the unemployment rate now at 9.4% many Americans are feeling the sting of the poor U.S. economy. In May 2009, it was reported that more that 6 million people have lost their jobs due to the economic recession.
When Americans lose their jobs, they lose their health insurance. Without health insurance you face having to file bankruptcy in a catastrophic event. If these tough economic times have claimed your job and you want to further understand what health insurance options are available please read on.
If you lose your job, you become eligible for 18 months of COBRA/CalCOBRA (Consolidation Omnibus Budget Reconciliation Act of 1985) health insurance. It is no surprise, as many have already found out, COBRA is an extremely expensive health insurance option! The good news is, effective March 1st 2009 COBRA has just become much more affordable for many!
On February 17, 2009 President Obama signed a bill that will provide a 65% subsidy for qualifying people currently on COBRA/CalCOBRA. This premium reduction became available March 1st 2009 and will continue until December 31st 2009.
To be eligible for the COBRA subsidy you must:
Be eligible for COBRA/CalCOBRA continuation of coverage as a result of an involuntary termination of employment at any time from September 1st 2008 through December 31st 2009.
Elect COBRA coverage when first offered or during the additional election period.
You are not eligible if you:
Are eligible for other group health coverage such as through a spouse’s plan or a new employer’s plan.
Are eligible for Medicare.
Make over $125,000 a year or $250,000 if filing a joint federal income tax return as a couple.
