WASHINGTON -- The following information was released by the office of New York Rep. Nita Lowey:
Congresswoman Nita Lowey (D-Westchester/Rockland) today called for an extension of the 65 percent federal subsidy of COBRA premiums that was authorized in the American Recovery and Reinvestment Act. Without an extension by Congress, some individuals lose these subsidies in November.
'Federal subsidies for COBRA premiums are making temporary health insurance more affordable for millions of unemployed individuals and their families,' said Congresswoman Lowey. 'This is not the time for those who have lost their job to have to worry about an impending drastic increase in their health insurance costs. Congress should extend these subsidies so the number of uninsured does not grow even further.'
COBRA -- named for the law that created it, the Consolidated Omnibus Budget Resolution Act -- is a vital backstop that helps individuals maintain their insurance when they lose their job and employer-sponsored coverage. COBRA is intended to provide temporary coverage until the beneficiary can find a new job and obtain more permanent health insurance.
Without an extension of the 65% federal subsidy created by the American Recovery and Reinvestment Act, unemployed individuals will be forced to pay the entire cost of their transitional health insurance, costing hundreds of dollars per month beginning in November. Without an extension, individuals who lose their jobs after December will no longer be eligible for the federal subsidy.
According to the U.S. Department of Labor, the current national unemployment rate is 9.7 percent and 46.3 million individuals lack health insurance.
At a time of high unemployment and lack of affordable health insurance options, it is critical the federal government extend federal COBRA subsidies to maintain this vital backstop for individuals and families.
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