Labor Department details COBRA changes in stimulus bill

As layoffs continue across the country, sky-high health care costs are a concern for anyone who has lost, or is danger of losing, their job.

COBRA, the provision which allows you to keep paying for your health insurance at your employer's rate if you lose your job, got bulked up in the stimulus bill, and today the Labor Department explained some of the changes.

The American Recovery and Reinvestment Act allows people who lost their jobs between September 1, 2008 through December 31, 2009 to pay reduced premiums if they elect COBRA, according to the Labor Department.

Eligible individuals pay only 35 percent of the full COBRA premiums under their plans for up to nine months, the department said.

"These programs are vitally important to the economic well-being of people who lost their jobs," Labor Secretary Hilda Solis said in a statement.

"The ARRA provides a 65 percent tax subsidy for the cost of health benefits, making them more affordable for the unemployed and their families. Millions of individuals, including those who previously declined employer-provided coverage under COBRA, will be eligible to receive a subsidy on their premiums for up to nine months."

For an explanation of what COBRA is and how it works, check the CR Health Blog's Buzzword: COBRA.

For details about the changes coming out of the stimulus package, check the Labor Department's COBRA page and question and answer page.