Unemployment COBRA Subsidy
Two-Month Extension

The Medical Security Plan or MSP (the Massachusetts health insurance coverage that is associated with Unemployment Compensation) has been helped by the 65% federal subsidy for COBRA beneficiaries that was part of the ARRA stimulus bill. As of December 1st. the subsidy ended for those who have been unemployed and receiving the discount since March 1 st. The Health Care for All HelpLine has received many calls from folks shocked to see their COBRA bill triple from last month. On December 22, 2009 President Obama signed legislation extending the COBRA subsidy through February.

The extension also extended the cutoff for eligibility for the COBRA subsidy to Feb. 28, 2010, from Dec. 31. Individuals whose subsidy had expired will have an opportunity to continue their COBRA coverage as long as they pay 35% of the premium, said Phyllis Borzi, assistant secretary of the Employee Benefits Security Administration.

-From “ Keeping Coverage For the Unemployed” by Kate Bicego, http://blog.hcfama.org/, MA Health Reform, 11 Dec 2009 01:35 pm, retrieved 12/22/09, and “Unemployment Extension; Extended Unemployment Benefits” by Alison Doyle, About.com Guide at http://jobsearch.about.com/od/unemployment/a/unempextension.htm, retrieved 12/22 and “COBRA health coverage, subsidies are expanded” By Sandra Block, USA TODAY, http://www.usatoday.com/money/industries/insurance/2009-12-21-cobra-subsidey-expanded_N.htm retrieved 12/22/09.

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