Subsidized Health Insurance For Those Facing Job Losses

April 23rd, 2009 by Reed Allmand

According to an article in the Star-Telegram, you may be eligible COBRA health insurance subsidies if you suffered a job loss, even if you worked for a small business.

The article said:

Traditionally, most people who leave their jobs can stay on their former employer’s health plan through COBRA, or the Consolidated Omnibus Budget Reconciliation Act of 1985. The idea is to give people access to health insurance while between jobs. The law applies only to people who worked at companies with 20 or more employees, but many states, including Texas, have their own laws to give workers at small businesses limited COBRA coverage as well.

The new government subsidy will pay for 65 percent of the COBRA health insurance premium for up to nine months. But to qualify for the program an unemployed worker must apply within 60 days of receiving a notification about their COBRA eligibility. Workers who faced job losses between September 1, 2008 and December 31, 2008, or who took payouts in anticipation of job losses are eligible to receive the subsidy. But unemployed workers who quit their job or were fired because of misconduct do not qualify for the subsidy.

Regarding the special “mini-COBRA” program provided by the state of Texas:

If you worked for a company with less than 20 workers and faced a job loss between September 1, 2008 and December 31, 2008 you may qualify for Texas’ “mini-COBRA” program. The Texas program gives unemployed workers access to their former employer’s health insurance plan (much like the federal COBRA program) for up to 6 months. You may also qualify for the government subsidy through the Texas “mini-COBRA” plan. Contact you healthcare provider for more information.