The stimulus bill has a provision for subsidizing COBRA by 65%. COBRA allows unemployed people the option of paying for their old insurance themselves and now the federal government is pitching in 65% That’s incredibly helpful. For instance, if I were to pay my insurance out of pocket, it would be over $300 a month. Thanks to Obama’s stimulus package, it’s more like $90. Here’s the catch:
They haven’t yet developed the subsidy program. This means in order to make my insurance effective, I have to pay the whole premium now. As soon as the stimulus money is available, I’ll be credited and everything I’ve paid will be used for future months.
Should I find work and want to cancel COBRA, I’ll have to fax them a letter and request a rebate for any money I’ve paid want back. Ya, I can’t imagine what could go wrong in this scenario.