For so many of us today the threat of unemployment is very real. With the unemployment rate hovering near all timecobra_flag highs, it is a fact of life, and something many of us worry about on a day to day basis. Thoughts of how will I feed my family, pay my mortgage and other bills can consume our everyday thoughts. If you do find yourself unemployed, you need to know what benefits you are entitled to. Under the current stimulus plan, besides your typical unemployment compensation, there are some other programs that are available. One such program that you should be aware of is the COBRA Stimulus Plan.

If you are unfamiliar with COBRA, it is a program that allows laid off employees the option to continue their health benefits package that they had been receiving from their employer. The great news with this program is that your benefits remain the same. The bad news is that you are now responsible for the full amount of the premium your employer pays each month to provide you with those benefits. Obviously, this can be very costly and a huge financial burden on individuals and families. Thanks to the Stimulus Plan, you very well may qualify to receive COBRA benefits for a substantially reduced rate.

If you were or become laid off between the dates of September 1, 2008 and December 31, 2009 you may be eligible to purchase, for up to 9 months, COBRA benefits at a 65% discount. For many individuals and families, this makes the benefit more affordable, and leaves less people without critical health care coverage. If you have been laid off you should receive a COBRA package that allows for you to sign up for this program. Once you have accepted the coverage, each month you will need to pay your reduced rate COBRA amount. The Stimulus money is then sent directly to the health care provider or your previous employer as a tax credit reimbursement.

There is of course, like any other Stimulus program, other qualification criteria that you should be aware of. If you are eligible to receive health care coverage in any other way, for example through a spouse’s benefits or Medicare, you will be unable to participate in the COBRA Stimulus program. If your former employer is no longer in business, you are also unable to collect this benefit. Finally, the COBRA Stimulus program is exclusively for those individuals who have been laid off from their employment. If you are fired or voluntarily terminate your employment, you will not be eligible for this assistance.



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