"You've probably read that the federal stimulus act requires employers to pay the upfront cost to subsidize laid-off workers on COBRA. The subsidy, which is retroactive to September 1, 2008, will call for employers to pay 65% of COBRA premiums. The federal government will reimburse employers later."
This is quite shocking. I always do COBRA when I leave a job, since I think being without health insurance is like playing Russian roulette with your financial future. And I've always had to pay around $300 to $350 a month for COBRA. So this means for every worker they lay off, companies are probably paying about $200 a month so they can have health insurance even though they don't work there any more. And the government will pay them back.
Holy cow. The Federal government is going to pay 65% of your health insurance premium costs after you get laid off (if your former employer was providing you with health insurance). That kind of progress with health insurance is staggering. I'm happy. But what about all those small businesses I see falling apart under the economy. Is the government going to do anything to help those business owners and their families pay for health insurance? Or are they out of luck because their income loss comes from following their dream, rather than slaving away at a 9 to 5 job they hate. I feel a bit like the stimulus act is going to rescue people who work for employers, but not employers who can't afford to pay people any more. I suppose that's the risk you take when you leave the security of a day job to open a business.