Federal stimulus reduces cost of COBRA for some
Bob Harvell, with the North Carolina Department of Insurance, said thanks to President Barack Obama's stimulus plan, the price of COBRA should be 65 percent cheaper for some people.
Posted — UpdatedFor people who are laid off, after the paychecks stop, the cost of health insurance goes up.
The federal government is stepping in to help by picking up 65 percent of the COBRA premium for those who qualify.
The subsidy was welcome news for Phillip Waldron. When he was laid off from his IT job with CarQuest before Christmas, he also lost health coverage for his family of four.
"Yeah, that's the scariest thing. It's so expensive, and yet it's so important. I mean, you can get by on hot dogs and chicken nuggets. It's not fun, but you can do that. But you have to have your medication to go to school and have a successful day,” said Leslie Waldron, Phillip's wife.
The Waldrons soon learned that their sons, Jonathan and Jonah, were eligible for Medicaid. They can go to the dentist, doctor and get prescriptions for just $1. But health insurance for Leslie and Phillip wasn't going to be as cheap.
"We knew that the cost of COBRA was overwhelmingly expensive and that it would draw from all of resources and take all of our funds away,” Phillip Waldron said.
Comprehensive COBRA coverage came to about $1,000 month, so the Waldrons found a slimmed down private health insurance plan for $350 a month. The cheaper plan carried a $5,000 deductible.
"In case, you know, we break an arm or get in a car accident, you never know and then at least we have something to help us work out payment plans,” Leslie Waldron said.
Bob Harvell, with the North Carolina Department of Insurance, said thanks to President Barack Obama's stimulus plan, the price of COBRA should be 65 percent cheaper for some people.
To qualify, you must have been laid off after Sept. 1, 2008, and before Dec. 31, 2009. You can't make more than $125,000 per year. If you have a family and file jointly, you can’t make more than $250,000 a year.
"If somebody says, 'Well we'll pick up 65 percent of that so you can continue (being insured) until you can get yourself on your feet, maybe six or seven months, we'll help fund that for you.' Well, yeah, that's a great help for an individual,” Harvell said.
However, if your company went out of business, you are out of luck.
Confused about how to qualify? Call your employer, or call the N.C. Department of Insurance at 1-800-546-5664 or the Department of Labor at 1-866-444-3272. If they can't help you, they can put you in touch with someone who can.
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