The Henry J. Kaiser Family Foundation, Kaiser Commission on Medicaid and the Uninsured, has released a new issue brief on the COBRA Subsidy and Health Insurance for the Unemployed. The report is issued in light of the rocketing unemployment rate and potential effect on those at risk of losing employer-sponsored health coverage.

The issue brief examines the COBRA provisions of the American Recovery and Reinvestment Act of 2009 (AARA) and examines how the legislation would work, who benefits and how the legislation interacts with other laws and programs on health coverage.

The brief, authored by Karyn Schwartz, notes that not all unemployed are eligible for the new COBRA subsidy, only those who already had employer-sponsored coverage before losing their jobs, and how had worked for a company with 20 or more full-time workers.

The brief reports how eligible individuals will can receive a subsidy under the AARA, and what the individual would have to pay (35% of the COBRA premium) and what the U.S. Government will reimburse employers and insurers (65% of the premium). In addition, the brief describes how those who qualify do not have to pay retroactively but just begin paying their 35% share.

There is also a description of options for the unemployed who do not qualify for COBRA, including the changes to Medicaid. The brief discusses how the AARA included $87 billion in additional temporary federal funding for Medicaid in the form of an enhanced match rate. States can pay some or all Medicaid premiums for those unemployed who may not be eligible for Medicaid or afford COBRA.

The brief also discusses the consequences of losing health care, and the problems in obtaining new insurance with a pre-existing condition. The report concludes that while the AARA is a helpful step, more comprehensive reform is needed to cover all those who need health coverage.

Read more at:
http://www.kff.org/uninsured/7875.cfm

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