Understanding President Obama’s Stimulus Package for Health Care

Posted by Andrew Friesner

March 18, 2009

Even the acronym is just a little scary; the word “COBRA” brings to mind images of a deadly snake, coiled to strike folks who just want to hang on to their health insurance, presenting them with limited options that can be prohibitively expensive. In today’s economy, with the unemployment rate hitting levels unseen in decades, COBRA is a fact of life for millions of people who find themselves suddenly without a job or corporate health coverage. To help stem the tide and provide much-needed relief, one of President Obama’s first moves was to propose a $790 billion package designed to stimulate the economy and create cash flow to help pull us out of a deep recession. Part of that package includes $193 billion for benefits programs, including COBRA.

Available to employers with 20 or more workers, President Obama’s plan is designed to help the jobless keep their former health coverage. Under his federal package, workers who were laid off between Sept. 1, 2008 and Dec. 31, 2009 will have 65% of their COBRA premiums subsidized by the federal government for up to nine months. If you were terminated between Sept. 1, 2008 and the day the law goes into effect but did not sign up for COBRA, you will have 60 days to do so and still receive the subsidy. This makes COBRA a much more affordable option for many families.

However, the problem with COBRA is that it doesn’t apply to small firms, or if a company closes up shop completely. If COBRA still isn’t the right option for you, don’t give up. There are plenty of other ways to obtain short- or long-term health coverage for your family while you assess your career options. Anthem, United Healthcare, Humana, Medical Mutual and Aetna offer a variety of plans, including high-deductible, low monthly premium programs, catastrophic coverage, dental benefits and prescription drug coverage, at a wide range of prices and options. To find the plan that best suits your needs and budget, visit www.healthinsurancechaser.com or call us directly at 877.775.4321. Our helpful agents are ready to make health care easy.

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