The government has expanded a program to help the unemployed buy health insurance. But, millions of people are not able to access the aid because of the programs design.
As a part of the economic stimulus plan, $25 billion was allocated to pay 65% of health-insurance premiums for workers laid off in 2009. Congress has extended the program for people laid off through February 2010. Because it is tied to the narrow parameters of Cobra, the Consolidated Omnibus Budget Reconciliation Act of 1985, the program is not available to many people in need.
Cobra requires companies that qualify offer group health insurance for former employees for up to 18 months. Insurance costs under Cobra have increased so that many people can’t afford the unsubsidized 35% portion. Meanwhile, millions of people don’t qualify for Cobra. Those include the self-employed, those working for companies that shut down or are too small, or companies who didn’t offer health insurance at all.
The subsidy is only available to those laid off since October 2008. Those affected prior to this date are not eligible.
This program is helping despite the gaps says the current administration. “This is a vast improvement over what was in place before when there were no subsidies at all,” says Jason Furman, deputy assistant to President Obama for economic policy. This program is only a short-term response to the current economic crisis and not a permanent answer.
More on this article in the Wall Street Journal.
