Congress has passed the “American Recovery and Reinvestment Act of 2009” which was signed into law by President Obama. This act includes a 65 percent subsidy on the cost of Cobra premiums for nine months. The Cobra recipient will only pay 35 percent of the overall Cobra premium for that period.

The coverage expires on the earlier of the date the individual becomes eligible for major medical employer-sponsored coverage or Medicare, nine months, or the end of the maximum required period of Cobra continuation.

The Cobra subsidy is available, if:

*You were laid off between September 1, 2008 and December 31, 2009; and

*At the time of your layoff, you were covered by an employer-sponsored policy  and

*Your annual income is less than $125,000 or your annual family income is less than $250,000; and

*Your prior employer must still be actively in business.

This subsidy is not retroactive and will only apply from the date of the law’s passage. If you are already enrolled in Cobra, and began paying premiums before the Act effective date, you will not receive a credit for the Cobra premiums you paid prior to the effective date.

However, if you were layed off on or after September 1, 2008 and did not Select Cobra within the 62-day window, you are allowed to become eligible for Cobra again, as long as your former employer still exists and offers group coverage.

Despite the 65% subsidy, it is still very possible that Cobra’s rate will be substantially higher than an Ohio individual health insurance plan. And, of course, the Cobra subsidy only lasts for nine months, leaving open the possibility that a chronic health condition could occur, thus, making it more difficult to qualify for an individual or family health insurance policy.

Additional Cobra details can be found from the United States Department of Labor. 

If your Cobra coverage is close to ending, we’ll find an affordable Ohio health insurance plan to meet your needs. You can view instant quotes at the top of the page or contact us.

UPDATE 2011- Of course, this subsidy has now expired.

President Obama wants to overhaul U.S. and Ohio health care. Can he do it? He took his first step by naming a University of North Dakota  health care expert to head the federal agency in charge of improving access to care in the United States.

Mary Wakefield was chosen to head the Health Resources and Services Administration, an agency of the U.S. Health and Human Services Department. This agency will oversee the release of $2.5 billion in the economic stimulus signed by President Obama. Ohio health care programs will likely see some of the money, but it may take quite a while to trickle down to you and I.

The Ohio health care system faces a shortage of nurses and has many individuals and families without Ohio health insurance. Can Obama push through a bill in Congress ?

The Associated Press reports that President Obama plans to move quickly.

“They don’t intend to blink. They intend to plow ahead,” said health economist Len Nichols of the nonpartisan New America Foundation. “Health reform is seen as essential to balancing the federal budget and economic recovery in the long run.”

Ohio health care will change, but it will take time. Premiums will likely reduce, but the major Ohio health insurance companies, such as Anthem Blue Cross, Aetna and UnitedHealthCare, will still be able to offer a wide variety of policies.

UPDATE: August 2011. Obamacare is now the law of the land…at least for now. Stay tuned for a possible Supreme Court ruling in 2012.