Uncertainty is the word of the day.  Employers were uncertain if the Cobra subsidy would be extended, and employees were wondering also.  Employers are relieved they no longer have to administer this subsidy, and employees are dealing with reality that they are on their own to solve their problems.  At Replace Cobra  , we provide solutions to those facing large Cobra premiums.   One item that most people do not realize, is that Cobra can be owned individually, and is no longer tied to the past employee.   For those people that have health issues, keeping Cobra for that solo person, and placing the family on a private insurance plan will save the average family $500/mo compared to Cobra premium.   Most states have a robust private market.  Contact a local agent to get educated on solutions in the market.

Read more:  Benefits Pro – Life without the Cobra Subsidy

As of Sept. 1, Americans who were laid off between September 2008 and May 2010 are no longer eligible for the COBRA subsidy, which was passed under the American Recovery and Reinvestment Act.

The COBRA subsidy covered 65 percent of COBRA premiums for 15 months of the program’s 18-month eligibility, meaning unemployed participants are now responsbile for all costs during the last three months.

But some employers were surprised to learn the subsidy was coming to an end so soon. Given all of the political posturing and the poor economic environment, those employers could have been under the impression that the subsidy was available for the full 18 months.

“The government had extended the subsidy and actually made some of them retroactive if they hadn’t acted in time, so that may have caused a perception that because of the high unemployment and the continued economic uncertainty that Congress would have extended the subsidies again,” says Steve Wojcik, vice president of public policy for National Business Group on Health.

The effects for unemployed workers

Now that the unemployed participants are footing the entire COBRA bill, many are wondering if they can afford to keep their coverage. Unemployment already provides a tough situation for millions of Americans, but adding those additional premium costs just makes the situation that much harder.

“I’m sure it’s going to be a tough situation,” Wojcik says. “The long-term unemployed are growing in numbers, and if they still have COBRA eligibility as their subsidies run out, they have to make that tough decision about whether they want to pay the full amount now, minus the subsidies, or give up their coverage, be uninsured and risk having some kind of big health claims without any insurance.”