While the overall stimulus bill has received a lot of coverage from the financial networks, one of the areas that has flown under the radar that people should know about is the increase in unemployment benefits, and specifically the improved COBRA subsidies.

What exactly is COBRA? COBRA gets its name from The Consolidated Omnibus Budget Reconciliation Act, which gives families or individuals the right to choose to continue group health benefits as long as they meet the basic requirements set by the act. Want to know if you are eligible to receive COBRA? Look at these basic COBRA benefits frequently asked questions for more detailed information. In order to receive COBRA from the company you have worked for after you are terminated you must have been terminated involuntarily and the company must have at least 20 employees.

What does the stimulus plan do for those who are unemployed and are paying for health insurance through COBRA? The plan allows these individuals to receive a discounted rate of just 35% of the total COBRA premium for the first nine months, with the US Treasury paying the rest of the amount during that time period. Previously individuals were responsible for 100%, this stimulus bill makes the amount they owe for the first nine months significantly lower. This is a huge benefit to those who are laid off because of the tough economic times.

How long does this plan stay in effect? The current time frame is that anyone is eligible to receive these COBRA stimulus premiums if they are laid off between 9-1-2008 and 12-31-2009. There is a possibility that congress will pass legislation to keep this law in effect longer, but that is not clear at this time.

Those who are unemployed still obviously need health insurance. The stimulus package allows the unemployed to benefit from more reasonable health care costs, so you would be foolish not to take advantage of this if you are eligible.