Cobra Subsidy Extension Expired - New Republican Bill offers little to the currently Unemployed and Uninsured.
At 12:01 AM June 1, 2010, the Cobra Subsidy extension expired after Sander Levin, the Chairman of the House Ways and Means Committee, and other Democratic leaders were forced by party moderates and conservatives unhappy with continued deficit spending to kill COBRA assistance benefits.
For those of you who are newly unemployed as of June 1, 2010, Medicaid, Disability, State Insurance Pools, and Individual Health Insurance may provide some relief.
Recently, Representative Joe Pitt, Republican from Ohio, introduced a bill that would allow individuals to divert $2,500 a year to a tax-free savings account that could be tapped to pay for group health insurance should they lose their jobs.
If passed, the newly introduced legislation, known as the COBRA Affordability Act, would allow individuals to save nearly $12,000 for themselves or as much as $27,000 for their families. The savings could be used to pay benefits under the COBRA program. Those under age 65 who lose their jobs could take money out of their COBRA Premium Payment Account and use the money toward insurance premiums.
Withdrawals for other purposes would be subject to a 20 percent penalty. Any unused money could be rolled into a retirement account when the account holder enrolls in Medicare. The bill would also permit those who lose their jobs to enroll in health plans offered by their employers within the 60-day COBRA election period. Current COBRA rules do not allow that.
If you have any questions, please feel free to contact us.
For those of you who are newly unemployed as of June 1, 2010, Medicaid, Disability, State Insurance Pools, and Individual Health Insurance may provide some relief.
Recently, Representative Joe Pitt, Republican from Ohio, introduced a bill that would allow individuals to divert $2,500 a year to a tax-free savings account that could be tapped to pay for group health insurance should they lose their jobs.
If passed, the newly introduced legislation, known as the COBRA Affordability Act, would allow individuals to save nearly $12,000 for themselves or as much as $27,000 for their families. The savings could be used to pay benefits under the COBRA program. Those under age 65 who lose their jobs could take money out of their COBRA Premium Payment Account and use the money toward insurance premiums.
Withdrawals for other purposes would be subject to a 20 percent penalty. Any unused money could be rolled into a retirement account when the account holder enrolls in Medicare. The bill would also permit those who lose their jobs to enroll in health plans offered by their employers within the 60-day COBRA election period. Current COBRA rules do not allow that.
If you have any questions, please feel free to contact us.
