Bill would help jobless keep health coverage

by Lesley Politi on May 26, 2009


COBRA is a plan that you can automatically go on to when you lose your Health Insurance through an employer. There is no need to go through underwriting or approval it is auto-guarantee. The price is the issue.

SACRAMENTO—Californians laid off from a small business would get help paying for their health insurance under a bill sent to the governor.The state Assembly on Monday approved legislation allowing out-of-work Californians to take advantage of a health care subsidy in the federal stimulus package.

The bill lets workers who are laid off between Sept. 1, 2008, and Dec. 31, 2009, receive a 65 percent federal subsidy to keep their private health insurance under the Cal-COBRA program. Cal-COBRA covers former employees of companies with two to 19 workers.

Assemblyman Dave Jones, a Sacramento Democrat who authored the bill, says the subsidy could help up to 100,000 Californians.

The federal COBRA subsidy already covers workers from larger employers, so no additional state legislation is needed to take advantage of it.

Gov. Arnold Schwarzenegger issued a statement saying he would sign the bill. He said it will offer Californians an “affordable opportunity to keep their health care coverage.”

The bill should help a lot of laid off workers keep Health Insurance coverage. The price of COBRA is very expensive for someone who is employed let alone someone who was laid off. I hear everyday that ones unemployment doesn’t even cover the price of the COBRA for the month.


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