Here are some answers:
- What is the COBRA subsidy? The COBRA subsidy is designed to help you pay for health insurance during unemployment. It pays for 65% of the cost of your COBRA premiums.
- Who is eligible for the COBRA subsidy? You can get subsidy if you were laid off between September 1, 2008 and May 31, 2010. The subsidy lasts for up to 15 months.
- What happens after 15 months? You can stay covered under COBRA for another 3 months (more in some states), but you will have to pay 100% of the premiums. For example, if you are currently paying $350 per month under the subsidy, your premiums will increase to $1000 per month.
- Where can I find less expensive health coverage? While the benefits from COBRA are great, the cost is often too high. Take a look at our article Health Coverage Help During Unemployment for ways to find great health coverage for as low as $39 per month.