Economic stimulus legislation to be considered by the Senate
Finance Committee next week would provide temporary federal COBRA
health insurance premium subsidies to employees who are laid
off.
Under the measure, the federal government would pay 65 percent of
COBRA premiums for employees who lose their jobs between September
1, 2008, through December 31, 2009. The subsidy would be available
for up to nine months.
The provision is far more limited than the COBRA
section of the economic stimulus bill approved Thursday, January 22,
by the House Ways and Means Committee. Under that measure,
beneficiaries 55 and older and employees who have worked at least 10
years for an employer could retain COBRA coverage until eligible for
Medicare. That would be a huge change from current law that allows
COBRA coverage for 18 months.
In addition, the Ways and Means Committee bill, which is expected
to be considered by the full House next week, would provide a
12-month federal COBRA premium subsidy for those losing their jobs
between September 1, 2008, and December 31, 2009.
Filed by Jerry Geisel of Business
Insurance, a sister publication of
Workforce
Management.