WASHINGTON - One of the key consumer benefits of the federal stimulus package - subsidies to help laid-off workers continue their health-care coverage - draws to a close Wednesday, raising concerns about how the unemployed will cover those expenses.
It's a dilemma that Holly Jespersen knows firsthand. She lost her job twice in the past two years - both times losing her employer-paid health insurance. But the second time, she paid about $350 a month more for insurance than she had the first time because she didn't qualify for the subsidy. "It made a huge difference for me," said Jespersen, 36, of Darien, Conn. "I wish I still had it."
Millions of laid-off workers benefit from the federal subsidies for COBRA, a program that allows people who lose their jobs to keep the employer-provided insurance, typically for 18 months, if they pay the entire premium plus a small percentage for an administrative fee.
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In February 2009, at the height of the economic downturn, Congress first approved a 65 percent subsidy for COBRA premiums to help those laid off starting in September 2008. While Congress extended the COBRA subsidy three times to cover workers who lost their jobs through May 2010, lawmakers last year resisted another extension amid rising concerns about the federal budget deficit.
The subsidy expires for virtually all who benefit from it on Wednesday. Consumer advocates this week lamented the end of the subsidy, saying it will add to the burdens of people losing work.
"COBRA is a critically important benefit for people who lose their jobs," said Ron Pollack, executive director of Families USA. "Unfortunately, it is a benefit that is unaffordable for the overwhelming majority of laid-off workers - and that's why the end of COBRA subsidies will make continued health coverage impossible for their families."
When originally passed, the bill made $25 billion available for the subsidies, and analysts estimated the program would aid more than 7 million laid-off employees and dependents nationwide.
On StarNet: Stephanie Innes brings you the latest health information in her blog, Tucson Health and Wellness, at go.azstarnet.com/health
By the numbers
65%
Percentage of laid-off workers' COBRA costs paid by the government under the federal stimulus package
$1,137
Average monthly price for family coverage without federal subsidy
$398
Average monthly cost of family COBRA coverage with the subsidy factored in
SOURCE: Kaiser Family Foundation
