Measures Taken By Government for Health Insurance

Measures Taken By Government for Health Insurance

With the globalization, there is also a hike in unemployment and thus results in unemployment and also of the loss in health insurance coverage for many people. In lieu of it the federal government has passed a new legislation to facilitate with COBRA coverage and also provides state aid to families with children.

Alterations made in COBRA

COBRA means for the Consolidated Omnibus Reconciliation Act and it was stated in 1986. Underneath COBRA, if you are employed in a company which have greater than 20 employees, then a group health insurance plan can be continued by you for 18 months. The negative aspect of COBRA is its price. According to surveys in various states, recipient''s gives a report that COBRA payments account gives benefit to over 75% unemployed. Though, according to the new Economic Stimulus Package, with 65% COBRA premium you are eligible for aid.

In order to qualify it is required your job is lost within the time span of September 1, 2008 to December 31, 2009. And also the income must be not as much of as $125,000 for a person & less than $250,000 a year for a family. Initially if you did not take the advantage of it then also you can sign up & get the advantage of money back for the paid premiums. According to the new law you will give 35% of the premium, & the rest 65% is paid by the government and thus assistance could go for nine months.

State Children''s Health Insurance Program

One more measure which has been taken by the central government recently is to aid people with health insurance coverage & also to enlarge the State Children''s Health Insurance Program (SCHIP). According to this law it would give $32 billion to the program for the subsequent five years & expand coverage from 7 to 11 million children. For children up to an age of 19, for pregnant women & for Low Income Families SCHIP is designed. A part of the revenue will be collected from the tax collected on Cigarettes. Also every state has its own different programs and it varies from State to state.

In conclusion if you are unemployed or if you don''t have health Insurance then the changes in the COBRA measures & the State Children''s Health Insurance Program would be Great assistance.

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