The COBRA subsidy establishes a tax credit that pays 65 percent of the cost of health insurance premiums for eligible unemployed workers who maintain their employer¬ sponsored health insurance through the COBRA continuing health insurance program. Normally, workers on COBRA coverage are required to pay up to 102 percent of the total cost of the premiums. For a typical family nationwide, the Recovery Act subsidy reduced the cost of COBRA from about $13,500 to $4,725, the Treasury report says. Taking into account the main eligibility requirements for the COBRA subsidy, the report finds that between one quarter and one third of eligible unemployed workers are enrolled in subsidized COBRA for continuing health insurance.
COBRA Subsidy Benefits Middle Class, Up to a Third of Unemployed, Treasury Reports
The COBRA health insurance subsidy has been especially important for middle class families by helping them maintain health insurance coverage during the recession, according to a U.S. Treasury Dept. report.
