US News and World Reports has an article answering the 8 Questions You May Have About the New COBRA Subsidy. It is a good addendum to our Our Frequently Asked Questions on the COBRA Premium Reduction.
Michelle Andrews wrote:
Michelle Andrews wrote:
Anxious readers who had lost their jobs wanted to know how they could apply for the subsidy, which will cover 65 percent of laid-off workers' COBRA health insurance premiums if they choose to continue their health insurance under their former employer's plan. The reason for their concern is no mystery: The federal law known as COBRA that permits them to extend their health insurance also requires them to pay 100 percent of the premium, plus an administrative fee of 2 percent. For people trying to get by on an unemployment insurance check of around $325 a week, shelling out $1,000 or more a month for health insurance is often not feasible. Even a helping hand of 65 percent doesn't make COBRA cheap, but for some the subsidy will at least make coverage affordable.If you have questions about the COBRA subsidy make sure to visit our FAQ, the article and the Department of Labor's COBRA website.
