Temporary Health Insurance Relief via Obama's Stimulus Package

President Obama signed the stimulus bill on Tuesday which gave some
relief to laid off workers who are struggling to get through these
difficult times.  The bill provides temporary COBRA Subsidy for real
working families.   Although layoffs may be inevitable, this temporary
subsidy will help a lot of middle class families stay insured.  For the middle class, health
care costs for a family can easily come to $1000+ per month.  Not surprisingly, health insurance is
usually the first safety net that disappears when faced with a layoff. 

The specifics are yet to be worked out.  But, beginning March 2009, the Federal government will subsidize 65% of the cost of COBRA coverage for up to nine months for individuals and their dependents who lose coverage due to an involuntary termination between September 1, 2008 and December 31, 2009 (if they have an income of $125,000 or less for an individual or $250,000 for married taxpayers.)

Initially, it may be financial burden for small businesses  who have to pay for the Cobra subsidy up front and wait for federal reimbursement via a payroll tax credit.  But, for the former employees who have worked hard and dedicated a part of their lives to these small businesses, this temporary subsidy provides a bit of light in a dark tunnel.