Changes in COBRA and Child Health State Health Insurance Program can provide valuable assistance to the recently unemployed.

The rising unemployment rate is not only causing loss of employment, but also the loss of value of health insurance coverage for many people. In response, the federal government has enacted New legislation to help with COBRA coverage and state aid to families with children.

Changes to COBRA

COBRA is the Consolidated Omnibus Reconciliation Act of 1986. Under COBRA, if you worked for a company that had over 20 employees, then you are able continue in the health insurance plan for as much as 18 months. The downside of COBRA is that it can be quite expensive. In most states, beneficiaries report that payments COBRA representing more than 75% of their unemployment benefit. However, in the recently passed economic stimulus package, you may be eligible for assistance with 65% of the COBRA premium.

To qualify for the program you must have lost their jobs between 1 September 2008 and 31 December 2009. Your income must be less than $ 125,000 for an individual and less than $ 250,000 a year for a family. If you have not taken advantage of COBRA initially, you can still register for it. If you signed up for COBRA coverage, you will not get the money back the premiums already paid, but you will be eligible for assistance from the point after the law took effect. Under the new law will have to pay 35% of the premium, and the government pays the other 65%. Their assistance may continue for up to nine months.

State Health Children's Health Insurance Program

Another step the federal government has taken recently to help people with health insurance coverage is to expand the Children's Health Insurance Program or SCHIP State. The bill will provide $ 32 billion to the program over the next five years and expand coverage from 7 to 11 million children. SCHIP is designed to provide health coverage for children up to 19 years of age and pregnant women in the families whose incomes are low but not low enough to qualify for Medicaid. Part of the funding will come from a tax increase on cigarettes.

Under SCHIP, the federal government provides states with adequate funding to provide health care for families with children. To qualify, families only could earn up to 200% of the poverty level. Under the new law, families can earn up to 300% of the poverty level and still qualify for SCHIP. Each state has established its program differently, so that programs can vary from state to state.

If you are out of a job and health insurance, two recent measures by the federal government can provide some help. The first is changes in the COBRA program where the government could collect up to 65% of the cost of health insurance premium. The other is the expansion of the Children's Health Insurance Program State. Either option could provide short-term assistance with health insurance coverage for the newly unemployed.

About the Author:

Kevin Kielty lives in North Carolina and writes articles on health insurance. If you are looking for rate quotes on health insurance in North Carolina, visit
BCBSNC
, also known as
Blue Cross and Blue Shield of North Carolina
.

Article Source: ArticlesBase.com – Government Measures to Help With Health Insurance

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