Lower House Approves COBRA Subsidy Extension

December 17, 2009

Washington – The House of Representatives has approved the extension of the current 65% subsidy of COBRA insurance coverage as part of the 2010 defense appropriations bill.

The bill would allow individuals to continue getting the subsidy for 15 months; 6 months more from the original 9 months allowed.

It would also qualify individuals who lost their jobs through February 28, 2010 to get the 65% subsidy.

Supporters of the bill faced resistance from some legislators due to its high cost.

The COBRA subsidy extension, together with the two-month unemployment extension, is expected to cost $78 billion.

That $78 billion is part of the $174 billion jobs package that includes funds for highway and transit projects, and keeping teachers and firefighters on the job.

About $75 billion of the $174 billion comes from diverting money from the Wall Street bailout fund.

Republicans, on the other hand, are arguing that these funds should instead be used in reducing the federal deficit.

The bill will now go to the US Senate and they are expected to take action on Friday, December 18, 2009.