 Image: Napalm filled tires under CC 3.0 |
A divided Congress failed to pass a bill that would have extended the COBRA health insurance subsidy for jobless workers. COBRA allows ex-employees to continue on their old employer’s health coverage, but it forces them to cover the entire premium–which they are often unable to afford. As part of the 2009 stimulus package, President Obama included a subsidy of up to 65% of the cost of COBRA coverage for those laid off during the recession.
Unfortunately, millions are still unemployed. The subsidies are steadily expiring, but budget concerns have made moderate Democrats (with an eye on winning re-election in November) leery of passing yet another big spending bill. President Obama has begged them to renew the subsidy, but to no avail. As a result, many will let their coverage expire and become uninsured.
However, there is a solution. Short term health insurance coverage can be kept only as long as you need it, until you find another job with health benefits. Most options are typically less generous than a previous employer’s insurance may have been, but that means that it will be more affordable. Such coverage protects you against essential emergencies.
