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Laid-off workers will soon lose health coverage

Posted: Nov 24, 2009 12:12 PM

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WASHINGTON, D.C.--On December 1, many laid-off workers in Arizona and their dependents who received federal subsidies to help pay for health care coverage will lose those subsidies and may join the ranks of the uninsured, according to a report issued today.

The subsidies--which were started last March by the American Recovery and Reinvestment Act (ARRA), but were made available for only nine months--have enabled millions of laid-off workers and dependents across the nation to afford so-called "COBRA" premiums needed to continue health coverage from their previous employer. Without such assistance, these premiums would consume 83.4 percent of the average unemployment check, putting continued health coverage out of reach for most families.

With the program's expiration on November 30, subsidies will end immediately for the first recipients, who began receiving subsidies in March, and subsidies will end nine months after the start-up date for those who started receiving subsidies after March. Beginning in December, no new unemployed workers will be provided with subsidies unless the program is renewed.

A special report from Families USA, the national organization for health care consumers, details how the COBRA subsidy helps make health insurance premiums affordable in Arizona.

The report, "Expiration of COBRA Subsidy," which will be released on Tuesday, December 1, will include:

* Background on the COBRA subsidy program in the American Recovery and Reinvestment Act.
* The average monthly COBRA premium for family coverage in Arizona.
* The cost of COBRA coverage for families with the subsidy provided under the terms of ARRA.
* The amount of subsidy lost by Arizona families if the program is not extended.

A national teleconference will be held on Tuesday, Dec. 1, 2009, to discuss the new Families USA report.

WHAT: National Teleconference and Release of Families USA Report,"Expiration of COBRA Subsidy"

WHEN: Noon EST, 11 a.m. CST, 10 a.m. MST, 9 a.m. PST
Tuesday, Dec. 1, 2009

HOW: Dial in toll-free: 888-587-0615
Confirmation code: 8444324

WHO: Ron Pollack, Executive Director, Families USA

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