Here are some important pointers for the COBRA subsidy and unemployment benefits. Both have important deadlines on December 31, 2009. Read on.
COBRA health insurance
The Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA, allows workers who’ve lost their jobs to qualify for up to a 65% subsidy to continue health insurance for themselves and their families. The remaining 35% will have to be paid to their former employers. The worker must have lost his job between September 1, 2008, and December 31, 2009.
The COBRA health insurance subsidy phases out when a person’s modified adjusted gross income goes over $125,000, or $250,000 for joint filers. Your income must be below $145,000, or $290,000 under joint filing to qualify.
Unemployment benefits
The recent stimulus act signed into law provided an extra $25 in weekly unemployment checks, allowed people to exclude up to $2,400 of their unemployment benefits from taxes. Depending on which state you’re in, unemployment benefits could last up to 79 weeks, all extensions to the original 26-week period included. However, most of these benefits end on December 31, 2009. Unemployment benefits will most probably go back to the original terms.
There are bills that seek to address these deadlines, but until these are passed, the New Year’s end of these two important support systems seems to be a certainty. It’s best to take advantage of them now, if you qualify.
Sign up on the box at the right to get more information on benefits, subsidies and other resources you can use to get back up on your feet.
Add A Comment