This COBRA doesn't bite

Did you know that part of the stimulus package is set up to cover a significant amount of COBRA premiums for those who have recently are will lose their job?

If you're like me, the thought of paying several hundred dollars a month for health insurance when unemployment won't even cover my mortgage payment, well, makes me think twice about a health insurance holiday. But for those who definitely need the continuing coverage or for those who don't want to risk lapsing their coverage and falling into the 'preexisting condition' trap once new coverage is established, there is some relief.

The plan is set to reduce the premium (automatically, once you've enrolled and qualified for the assistance) by 65%.

According to the Department of Labor (DOL) website (the agency responsible for COBRA), the relief is available for someone who is:

• is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009;
  
• elects COBRA coverage; and
  
• is eligible for COBRA as a result of the employee's involuntary termination between September 1, 2008 and December 31, 2009.

The following links come from the DOL website, where you can find lots of other related resources:

FAQs on COBRA Premium Reductions

FAQs on COBRA

In terms of health care, this is a great time to be unemployed...assuming you qualify for COBRA and the recovery assistance.