COBRA REFORM - HOPE IS ON THE HORIZON
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 which contained a provision to help struggling families pay for their COBRA benefits. The plan reduced COBRA premiums by 65% and provided the recently unemployed with the ability to re-enroll in COBRA if they failed to sign-up initially, or signed-up but let their coverage lapse.
Unfortunately, the plan was only available to those who were involuntarily terminated between September 1, 2008 and December 31, 2009. In addition, the 65% subsidy only lasted for 9 months. Americans who lost their jobs prior to September 1, 2008 were left without any premium assistance at all. Many lost their coverage. Now, even those who qualified for assistance initially are coming to the end of their 9 month subsidy.
Thanks to the more than one thousand of you who signed our petition, called your congressmen and wrote letters to your local newspapers, there are currently two bills working their way through congress that may offer some relief.
1) H.R. 3930 - Introduced on October 26, 2009 by Representative Joe Sestak, Democrat from Pennsylvania, proposes to extend the maximum length of Federal COBRA benefits from 18 to 24 months. The subsidy would apply to those who lost their jobs or had their hours reduced between April 1, 2008 and June 30, 2010. In addition, it would extend the 65% subsidy from 9 to 15 months.
2) S. 2730 - Introduced by Sherod Brown, Democrat from Ohio, Robert Casey, Democrat from Pennsylvania, and Al Frankin, Democrat from Minnesotal, proposes, among other things, to extend the COBRA subsidy from 9 to 15 months. Like H.R. 3930, it will also will include people who had an involuntary reduction in hours and it will also extend the program through June 30, 2010. Unlike H.R. 3930, it proposes to increase the subsidy from 65% to 75%.
Now is the time for all of us to get busy calling our Senators and Representatives to encourage them to support these bills.
Unfortunately, the plan was only available to those who were involuntarily terminated between September 1, 2008 and December 31, 2009. In addition, the 65% subsidy only lasted for 9 months. Americans who lost their jobs prior to September 1, 2008 were left without any premium assistance at all. Many lost their coverage. Now, even those who qualified for assistance initially are coming to the end of their 9 month subsidy.
Thanks to the more than one thousand of you who signed our petition, called your congressmen and wrote letters to your local newspapers, there are currently two bills working their way through congress that may offer some relief.
1) H.R. 3930 - Introduced on October 26, 2009 by Representative Joe Sestak, Democrat from Pennsylvania, proposes to extend the maximum length of Federal COBRA benefits from 18 to 24 months. The subsidy would apply to those who lost their jobs or had their hours reduced between April 1, 2008 and June 30, 2010. In addition, it would extend the 65% subsidy from 9 to 15 months.
2) S. 2730 - Introduced by Sherod Brown, Democrat from Ohio, Robert Casey, Democrat from Pennsylvania, and Al Frankin, Democrat from Minnesotal, proposes, among other things, to extend the COBRA subsidy from 9 to 15 months. Like H.R. 3930, it will also will include people who had an involuntary reduction in hours and it will also extend the program through June 30, 2010. Unlike H.R. 3930, it proposes to increase the subsidy from 65% to 75%.
Now is the time for all of us to get busy calling our Senators and Representatives to encourage them to support these bills.