Prospects for Unemployment & COBRA Extensions (employees, 2009, apply, unemployed)

[trekin]

Originally Posted by diorgirl

According to an article appearing in today's edition of SFGate, the online publication of The San Francisco Chronicle, Kathleen Pender looks at "4 stimulus breaks due to run out at year end" -- and their prospects for renewal.

These include beefed-up unemployment benefits, the sales tax deduction for new-vehicle purchases, a federal subsidy for COBRA health-insurance premiums and the $8,000 first-time home-buyer credit.

Specificallly of interest to the unemployed:

Unemployment: The stimulus act increased the weekly unemployment benefit by $25 per week, allowed people to deduct up to $2,400 in benefits on their federal tax return and extended the federal government's extended benefits program, which provides additional compensation to people who have used up their regular state benefits.

The first and second extensions were supposed to expire in the spring but the stimulus extended them until December 31, 2009. The stimulus also provided 100 percent federal funding for a third extension.

All these federal benefits sunset after December 31, 2009. A person who was already receiving extended benefits on January 1, 2010, could finish that round of benefits, but not start the next extension. A person who was still receiving their regular state benefits on January 1, 2010, would get no extended benefits.

HR3404, sponsored by Rep. Jim McDermott, D-Wash., would extend all of the expiring provisions through 2010. It also would create a fourth extension of up to 13 weeks for people in high-unemployment states.

To help people who will receive their last check in the next few months, McDermott plans to put the fourth extension into a separate bill and focus on passing that quickly. The rest will go into another bill, says Mike DeCesare, McDermott's press secretary.

Sen. Jack Reed, D-R.I., has introduced a similar bill, S1647.

Cobra subsidy: Workers who are terminated between September 1, 2008, and December 31, 2009, and are eligible to stay in their group health plan at their own expense under the law known as COBRA can get the government to pay 65 percent of their premium for up to nine months, as long as they are not eligible for Medicare or any other group health plan.

People who started getting the subsidy when it became available March 1, 2009, run out after November 2009. People who are still getting the subsidy at year end can continue until it's used up. But people who get laid off after December 31, 2009 won't get any subsidy.

There are no bills to extend the subsidy, but it's likely to come up.

The subsidy "was supposed to be a bridge to get us to health care reform," says Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "If health care doesn't get fixed, maybe they will keep this Cobra subsidy in place."

To read the complete article go to:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/09/05/BU5G19IBLT.DTL&type=business

Thank you for the info, I have been wondering about a fourth extension of unemployment benefits...I have applied to a facility that is just done being constructed and the opening date keeps being put off. What was to open in june of 09 is now opening in november of 09..., it is a place that i really feel is the best company since they have a high standard on patient care and employee appreciation. Something not happening in my last job unforutunately.
I believe the facility is obviously affected by the current ecomonic downturn but they have finished their construction. They have 12 plus facilities in Europe and this is the second one in the U.S.
I feel it would be a secure job if all goes well...but it is good to know a fourth extension of unemployment benefits may be available if needed!
trekin

[diorgirl]

About one hour ago, a report appeared on CNNMoney.com that legislation for another extension in Unemployment benefits [H.R. 3548] is scheduled to be considered by Congress next Wednesday.

The House measure would lengthen benefits by 13 weeks for the more than 300,000 people who live in states with unemployment rates greater than 8.5% and who are set to run out of compensation by the end of this month, a Democratic aide said. The legislation would also help another 1 million people who are scheduled to lose benefits by the end of the year.

The measure is expected to pass in the Democrat-controlled House, though it could face a challenge in the Senate. Senate Republicans could not be reached for comment Thursday, but Sen. Jim DeMint, R-S.C., last month told Fox News that he would vote in favor of extending benefits.

The full story is at:
House to vote on extending unemployment benefits - Sep. 17, 2009

[azoria]

Twenty seven states on the 'high unemployment' list?!

That's more than half the country.

[diorgirl]

HR 3548 is the last bill scheduled for a vote on the House's very busy calendar this Tuesday:

TUESDAY, SEPTEMBER 22, 2009
On Tuesday, the House will meet at 12:30 p.m. for Morning Hour and 2:00 p.m. for legislative business with votes postponed until 6:30 p.m.

Suspensions (15 Bills)

1. H.R. 860 - Coral Reef Conservation Act Reauthorization and Enhancement Amendments of 2009 (Rep. Bordallo - Natural Resources)
2. H.R. 1080 - Illegal, Unreported, and Unregulated Fishing Enforcement Act of 2009 (Rep. Bordallo - Natural Resources)
3. H.R. 2802 - To provide for an extension of the legislative authority of the Adams Memorial Foundation to establish a commemorative work in honor of former President John Adams and his legacy (Rep. Delahunt - Natural Resources)
4. H.R. 3113 - Upper Elk River Wild and Scenic Study Act (Rep. Rahall - Natural Resources)
5. H.R. 2265 - Magna Water District Water Reuse and Groundwater Recharge Act of 2009 (Rep. Chaffetz - Natural Resources)
6. H.Res. 670 - Congratulating and saluting the Hawk Mountain Sanctuary for celebrating its 75th anniversary, commending the Hawk Mountain Sanctuary for its contributions to the preservation of wildlife and the native ecology of the Appalachian Mountains and eastern Pennsylvania, and commending the Hawk Mountain Sanctuary for its dedication to educating the public and the international community about wildlife conservation (Rep. Dent - Natural Resources)
7. H.Res. 599 - Honoring the Minute Man National Historical Park on the occasion of its 50th Anniversary (Rep. Markey (MA) - Natural Resources)
8. H.Res. 688 - Expressing support for the goals and ideals of the first annual National Wild Horse and Burro Adoption Day taking place on September 26, 2009 (Rep. Titus - Natural Resources)
9. H.R. 2522 - To raise the ceiling on the Federal share of the cost of the Calleguas Municipal Water District Recycling Project (Rep. Gallegly - Natural Resources)
10. H.R. 2741 - To amend the Reclamation Wastewater and Groundwater Study and Facilities Act to authorize the Secretary of the Interior to participate in the City of Hermiston, Oregon, water recycling and reuse project (Rep. Walden - Natural Resources)
11. H.R. 2971 - To designate the facility of the United States Postal Service located at 630 Northeast Killingsworth Avenue in Portland, Oregon, as the "Dr. Martin Luther King, Jr. Post Office" (Rep. Blumenauer - Oversight and Government Reform)
12. H.Res. 441 - Honoring the historical contributions of Catholic sisters in the United States (Rep. Kaptur - Oversight and Government Reform)
13. H.R. 2215 - To designate the facility of the United States Postal Service located at 140 Merriman Road in Garden City, Michigan, as the "John J. Shivnen Post Office Building" (Rep. McCotter - Oversight and Government Reform)
14. H.Con.Res. 163 - Expressing support for designation of September 23, 2009, as "National Job Corps Day" (Rep. Moran (KS) - Oversight and Government Reform)
15. H.R. 3548 - Unemployment Compensation Extension Act of 2009 (Rep. McDermott – Ways and Means)

Congress Matters ::

[C.C]

Originally Posted by diorgirl

Cobra subsidy: Workers who are terminated between September 1, 2008, and December 31, 2009, and are eligible to stay in their group health plan at their own expense under the law known as COBRA can get the government to pay 65 percent of their premium for up to nine months, as long as they are not eligible for Medicare or any other group health plan.

People who started getting the subsidy when it became available March 1, 2009, run out after November 2009. People who are still getting the subsidy at year end can continue until it's used up. But people who get laid off after December 31, 2009 won't get any subsidy.

There are no bills to extend the subsidy, but it's likely to come up.

The subsidy "was supposed to be a bridge to get us to health care reform," says Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "If health care doesn't get fixed, maybe they will keep this Cobra subsidy in place."

Thank you for great info. I wonder if you have any insight on the MacGuineas quote? Even if health care does "get fixed" it's my understanding that none of the bills being considered would provide any relief until 2013, so I don't see any connection to possible COBRA subsidy extension...

[diorgirl]

Originally Posted by C.C

Thank you for great info. I wonder if you have any insight on the MacGuineas quote? Even if health care does "get fixed" it's my understanding that none of the bills being considered would provide any relief until 2013, so I don't see any connection to possible COBRA subsidy extension...

The COBRA premium subsidy currently in effect has no relationship to the Health Care Reform package now under debate. The premium subsidy was part of the Stimulus package that was passed earlier this year -- as a "temporary fix" for jobless, related to extensions of unemployment benefits.

Despite MacGuineas's comment, the subsidy was never intended "to be a bridge to get us to health care reform."

In fact, it is the continually rising rate of unemployment -- and the length of time people are typically out of work in this economy -- which are driving interest in extending COBRA. Congress is trying to provide assistance through extending unemployment benefits -- and to a lesser extent, COBRA coverage -- to avoid the inevitable surge in social services costs when these benefits run out and people are forced to turn to local government for assistance.

The COBRA subsidy extension -- along with other elements of the Stimulus package which are due to expire by year-end -- is being considered for inclusion in the proposed unemployment extension now before Congress, or as add-ons to different legislation before year-end.

As with everything, the passage of an extension of COBRA will be determined to a large extent by the cost -- and how the additional expenditures would be funded.

[C.C]

Originally Posted by diorgirl

Despite MacGuineas's comment, the subsidy was never intended "to be a bridge to get us to health care reform."

Ah, my point exactly. I should mention that I'm currently receiving the subsidy, and I will be medicare-eligible by the time the reforms kick in.

Originally Posted by diorgirl

As with everything, the passage of an extension of COBRA will be determined to a large extent by the cost -- and how the additional expenditures would be funded.

Well the $250B totally unfunded "docfix" got 47 Senate votes last week, so I'm not sure either cost or funding are of much concern these days...

[diorgirl]

Originally Posted by C.C

Ah, my point exactly. I should mention that I'm currently receiving the subsidy, and I will be medicare-eligible by the time the reforms kick in.

Well the $250B totally unfunded "docfix" got 47 Senate votes last week, so I'm not sure either cost or funding are of much concern these days...

I'm not certain you would feel that way if you have been following the very contentious debates over funding another unemployment extension! LOL!

[ggg0959]

I read somewhere that NYS has gotten an extension of Cobra to 36 months/ Is that correct? Is there any info of that happening in NJ.

[diorgirl]

Originally Posted by ggg0959

I read somewhere that NYS has gotten an extension of Cobra to 36 months/ Is that correct? Is there any info of that happening in NJ.

COBRA is a federal program -- any changes would affect all states.

I am unaware of any legislation extending COBRA -- although there has been lots of discussion about the possibility. Do you have a link to where that info was published?