8 Questions You May Have About the New COBRA Subsidy

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My name is Jerry Lisjak and live in MichiganA Like many of others who have used this forum, I also have been laid off since June 12 2008 from the result of the auto industry downsizing. I was called at home that night and told I was laid off and that my contract company would retrieve my personal belongings for me. This was after working in house for 15 years with one of the Big 3. Two weeks later my wife was diagnosed with breast cancer. With a son in college and a daughter soon to graduate from high school Cobra had reared it's evil head before us. With my wife facing surgery, chemotherapy, radiation and a host of prescriptions we were forced with paying a Cobra benefit of $1209.00. No one else would insure us now. I did find a job with a construction company as a laborer, but at 54 years old the ole body was wondering if it could handle the task. Fortunately even though I was an auto designer that sat behind a computer, I worked out on a regular basis. But unfortunately the economy hit that industry and I was once again laid off. Help from friends and a fund raiser for my wife has kept our Cobra current but that money is now exhausted.
I will start "A no worker left behind program" in April 2009 but like many others bills are piling up.
We need help, and by We I not only mean my family but thousands of other American families. Families whose Dads and Moms worked for years, paying co-pays for their insurance and now because of job losses are given two options; pay Cobra or find your own insurance which for some is possible. Unfortunately if faced with certain health issues some families cannot select that option.
I am not asking for a free ride, because I know deep down that I should have been going to college part time for a new career during my 25 years in the auto industry. I saw the industry's ups and downs and warning signs but the money was good and I became fat and happy. I was never really satisfied in my career and now even at 54 I hope to change that. But we still need help. Help for all not just those within a certain time frame of job loss. Not just the big banks who can't account for the aid they have received.
Our government is faced with a huge task of digging America out of hole that it dug for 9 years. Yes the last year of Clinton's presidency was when it started to begin. The last 8 really just kept digging harder and deeper. Politics aside, even though I don't know how my next Cobra bill will be payed or if I will have my house in 6 more months, we as Americans have to not only help ourselves but unite and let government and business know it is time to stop the greed and make America first.
Thanks, Keep the Faith and God Bless America

Jerry Lisjak of IA 9:46AM March 06, 2009

I am leaving my job at the end of this month (march) and need to know if I am eligible for the subsidy. My new job will not offer insurance until 90 days after my first day.

marie of MO 9:39AM March 06, 2009

I lost my job in mid August 08, and had paid my employer sponsored health insurance premiums for the month of August prior to being laid off. I did not become eligible for Cobra till Sept 1, 2008. Does anyone now if I qualify for the Cobra Subsidy? According to what I have read above, I would be eligible becaue my election of Cobra was in Sept. 08? My employer says I am not because I was laid off in Aug.

Brinin of CT 9:25PM March 05, 2009

It is a very difficult position that unfortunately not only many people but also many small business's find themselves in.
NJ Mini COBRA laws require any company with 2 employees or more to be covered by COBRA. A small construction business with 12 employees is faced with discontinuing the medical/dental benefits the company pays for, for their employee's. A small business cannot afford to front 65% of the plans cost for all the employees that leave their employ. Even though the cost will ultimately be passed on to the Fedal government when our federal tax liability is reduced; the immediate impact to the company's cash flow both right now and in the future appears staggering.
How does NJ's Mini COBRA laws forcing an employer to discontinue a benefit help the employee!!!

Steve of NJ 5:43PM March 05, 2009

I have been trying to ask my health fund about this program and they said they have never heard of such a thing. I currently have to pay out over $1000.00 to cover my family. If I were a single male, I won't worry. But I am a husband and father and my family needs to be taken care of. Between cobra, household expenses that sucks up about 90% of unemployement. The worst part is that my former employer that went out of business, took our last months insurance money and never paided the plan. So the day we were let go, we had to cough up $1000.00 the next day to continue coverage. I don't know how I will make it at this pace. I hope something happens for all of us and fast!! Not only will we not be able to get sick, but basic needs will not be able to be meet.

Dennis of CA 1:54PM March 05, 2009

The Department of Labor website has a lot more information, including a FAQ for employees who are considering COBRA, info for employers on how to calculate premium reduction, etc. Nice to hear the info. "from the horses mouth" so to speak.

Ann of IA 11:43AM March 05, 2009

I AM RETIRED BUT NOT YET ELIGIBLE FOR MEDICARE. I LIVE ON $1,600 A MONTH AND PAY $420 A MONTH FOR COBRA (WHICH IS A REAL DRAIN ON MY INCOME) AND MAKES IT DIFFICULT FOR ME TO PAY OTHER BILLS. AM I ELIGIBLE?

LINDA DRAGO of AZ 11:32AM March 05, 2009

This is so TERRIFIC of you to post this. Finding straightforward answers & explanations that don't use terms like "assistance eligible individuals" is so welcome. Much appreciated.

Dave G of MA 11:28AM March 05, 2009

This program sounds wonderful at first glance, and I'm sure it will help lots of people who lose their job next month or even six months from now, but my husband lost his job in August 2008, so we don't qualify because of the seemingly arbitrary cutoff date of September. I am self-employed (read: pay self-employment tax, essentially double Social Security), so there is no plan I can sign up with through my employer. And dropping our policy altogether is not an option because we have a son with a chronic illness and live in a state that allows insurance companies to deny him coverage based on a pre-existing condition. Our premiums cost more than my husband receives in unemployment benefits, and almost twice the amount of our mortgage payment. The way COBRA works, you are entitled to keep the exact same coverage you had through your employer. You don't have the option of choosing a less-expensive plan. It's all or nothing. So what are we supposed to do? I'm beginning to think our only option is to default on our mortgage (we have never even been late with a payment in 16 years) so we will qualify for some kind of help.

Drowning in Ohio of OH 11:25AM March 05, 2009