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The Extension of the COBRA Subsidy: An Update

Categories:

Topics: Access/Barriers | COBRA | Legislation (National) | Out-of-Pocket | Rates/Reimbursement | Spending | Uninsured

On April 16, KFF released an updated fact sheet on the impact of the Continuing Extension Act of 2010 (HR 4851) on health insurance for the unemployed.  

From the report:

In an effort to help people maintain coverage after a layoff, the stimulus bill officially known as the American Recovery and Reinvestment Act of 2009 (ARRA) provided a 65% subsidy to some of the unemployed to help them temporarily afford to keep their previous employer-sponsored coverage through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). This program has since been extended and the latest extension will allow individuals who are laid off through the end of May 2010 to qualify for the subsidy. Without this subsidy, individuals maintaining their previous employer-sponsored coverage have to pay the full premium—both the employee and the employer share—plus a 2% administrative fee. The full cost of maintaining the average employer-sponsored coverage through COBRA is $1,137 per month for family coverage and $410 per month for individual coverage. Under the subsidy, the cost of maintaining the average policy is $398 per month for a family and $144 for an individual.

For the fact sheet:  The Extension of the COBRA Subsidy: An Updateexit disclaimer small icon (PDF | 696.3 KB)exit disclaimer small icon

Kaiser Family Foundation. (2010). The Extension of the COBRA Subsidy: An Update. 


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