The Ministry of Lisa Copen

Lisa Copen, Founder of Rest Ministries which serves the chronically ill, shares about mothering, illness, ministry and more.

COBRA Coverage is Part of Stimulus Plan

We each have varying degrees of healthcare, but in my case, my husband has our health insurance through his work. If you have a chronic illness, it can be more scary to lose your job because of the health insurance that your spouse or you have than the actual job loss.

This is not typically something I blog about, but I know it was good news for me to hear and I wanted to make sure you heard about it too!

COBRA was put into place years ago. It’s a fancy way of a saying there is an insurance program for those who are covered by their work, and, if laid off, you have 18 months where that company has to cover you with health insurance.

But you pay 100% of what your company was paying.

This is worth noting: Now, with the stimulus program of the USA government, you “only” have to pay 35% of the cost of COBRA for 9 months. (After 9 months you pay 100%.)

But… you have only 60 days to go into your human resources office and get signed up, so if you or your spouse does lose a job, make this the project for day 2 or 3. Don’t wait!

Also worth noting, because of the stimulus plan, if you were laid off after Sept 9, 2008, you can go back and apply now and have your monthly COBRA plans reduced.



  Michele wrote @

That is good news! Hopefully we won’t have to use it… but it is good to know…. Jim did not loose his job at the school disctrict… our state budget has caused a couple of thousand teachers to loose their job. Jim received a contract for next year… with a 4 % pay cut! At least he has a job!

  Gail wrote @

I knew about COBRA, because we had to use it once when my husband started a new job, and their benefits didn’t start for 3 months.

Now we have a situation that is a little different. My husbands company will close completely within around 60 days if they don’t find a buyer. His plant is an automobile parts manufacturer, so you can understand our concern for the future.

The unique question for COBRA is: if your company no longer exists, There is no insurance plan to use for COBRA. My husbands company is a self-pay PPO. Does anyone know what to do in this situation?


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