The final word on that COBRA subsidy[SIZE=-1]The COBRA part of the final stimulus bill is a true compromise. The government will subsidize 65 percent of COBRA premiums, as the House wanted, but the subsidy only lasts for nine months, as the Senate wanted.
The bill contains another provision that might save a bit of money for the newly laid-off. It says that people can choose their COBRA coverage from among any of the health plans that their employer offers. This is helpful because under the current COBRA rules, you normally have to keep the last coverage you had at work as your COBRA coverage. If you employer offers cheaper plans, you have to wait until your company?s next open enrollment period to make the switch.
Sadly, the House's proposal to let laid-off people over the age of 55 buy into COBRA until they become eligible for Medicare is no longer part of the bill. And there?s no change to the dates of eligibility. To get the subsidy, you have to have been laid off between Sept. 1, 2008 and Jan. 1, 2010.
?Nancy Metcalf, senior project editor
Read more on COBRA and the stimulus bill.
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