Managing Money :: COBRA ends; insurance bill increases

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Released: August 18, 2010

COBRA ends; insurance bill increases

Source: Andrew Villegas and Phil Galewitz, Kaiser Health News [USA Today] (Free Registration)

Jennifer Richards of Park Ridge, Ill., is angry that her family’s monthly health insurance bill tripled in August to $1,250 after her husband lost his job and health benefits. But as bad as that is, what really upsets her is the inaction of Congress.

Deficit-conscious lawmakers have not renewed a subsidy that helped many jobless Americans afford health benefits. A longstanding federal law called COBRA requires employers to continue insurance for former employees, typically for 18 more months, if they pay the entire premium plus a 2% administrative fee. Last year, Congress approved a 65% COBRA premium subsidy, but it ended May 31.

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