Michigan has been one of the hardest hit in the recession, unemployment has grown higher than in any other state. It is now estimated that 1 in 5 families now receive some sort of public assistance in Michigan. Without the Cobra subsidy extension, many Michigan families would no longer be able to have health care for their families.
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On December 21, 2009 the U.S. Department of Labor news released the statement that the COBRA subsidy was to be extended. This statement was released by Phyllis C. Borzi, Assistant Secretary of the Employee Benefits Security Administration. The statement goes as follows:
"I am pleased Congress has acted and the President has signed the Fiscal Year 2010 Defense Appropriations Act. The act extends the eligibility period for the COBRA premium reduction for an additional two months (through Feb. 28, 2010) and the maximum period for receiving the subsidy for an additional six months (from nine to 15 months). Millions of unemployed Americans and their families will be better able to afford and keep their health benefit coverage because of this new law.
"Individuals who had reached the end of the reduced premium period before the legislation extended it to 15 months will have additional time to pay the reduced premiums related to the extension. To continue their coverage they must pay the 35% of premium costs by (60 days after date of enactment) or, if later, 30 days after notice of the extension is provided by their plan administrator.
"We encourage you to subscribe to our COBRA Web site, www.dol.gov/cobra, to get information on new notice requirements, updated guidance, fact sheets, and frequently asked questions as they become available.
"Individuals should contact their plan or health insurance provider for information regarding the extension under their health plan. If you need further assistance contact an EBSA Benefits Advisor toll-free at 1-866-444-3272."
This Act should hopefully help many in need of health insurance not only here in Michigan but throughout the country until people can return to work. This may only be a bandage for now but today we have health insurance and it feels pretty good thanks to the COBRA subsidy extension.