Sad news for unemployed workers who are expecting an extension of the government’s COBRA premiums subsidy, it looks like no action would be taken by both houses of congress on the issue at least until December.
The government subsidy of COBRA insurance premiums are set to expire this December 31 and most of those who availed the subsidy will exhaust the benefit this November.
The two bills, HR 3930 and S. 2730, aim to extend the subsidy to about 15 months with the latter even proposing to increase the subsidy to 75% from the original 65%.
However, Congress left on Thanksgiving break without any progress on the bill.
So many Californians are disappointed right now.
The subsidy was a welcome turn for those who wished to continue their insurance policy after being unemployed, especially for those who have existing medical conditions that will not be covered if they shifted to another insurance provider because of pre-existing condition clauses.
The subsidy covered 65% of the COBRA premiums for maximum 9 moths.
However since the cost of COBRA insurance is too high, very few will be able to continue to pay and a lot will be forced to drop their plans after the expiration of the subsidy at the end of the year.
All they can do now is wait till December and hope that Congress will work fast enough to pass the bill.
That is if they actually pass the bill.