INSURANCE AID FOR THE FRESH UNEMPLOYED
INSURANCE AID FOR THE FRESH UNEMPLOYED
A new law has been brought into force much to the relief of all those employees who have recently lost their jobs and were covered by employer-sponsored insurance programs hitherto. Individuals who lost or are likely to lose their jobs between September 1, 2008 and December 31, 2009 will be covered under this scheme at considerably reduced rates of premium. The federal government has decided to pay 65% of the premium under Cobra for all those employees who have been laid off in the last seven months or so and are likely to be given marching orders on or before 31st December of his year. This applies to those employees too who have not signed up for Cobra after losing their jobs, in view of the high cost of premiums, but they have to do this prior to April 18.
This is a great move by the federal government to ensure that they employees continue to stay insured even after losing their jobs. Till recently, only a small section of employees who lost their jobs were opting for Cobra owing to its high premiums but now they are expected to pay only about $130 a month for single person and $350 per family. This reprieve extended would take care of them for the next nine months for all those who do not fall under Medicare or a spouse’s plan, until they are in a position to find an alternative employment, or if their income falls less $125,000 or $250,000 singly or jointly, respectively, in the year in which they are eligible for the subsidy. This has come as breather to all those who do not want a discontinuation in their insurance and want to stay insured till a better employment comes along.
Tags: insurance