White House Backs Boost In COBRA, Health Insurance Premium SubsidiesModern Healthcare/Crain's Business Insurance: White House Backs Health Premium Subsidy
The Obama administration is backing a temporary boost in federal subsidies of health insurance premiums, such as COBRA coverage, for workers who lose their jobs due to foreign competition and older retirees in failed pension plans. A 2002 law created the subsidy, the Health Coverage Tax Credit, and set a federal tax credit of 65 percent. In 2009, the economic stimulus law raised the credit to 80 percent through Dec. 31, 2010. Last year, Congress approved a temporary extension through Feb. 13. However, the subsidy reverted to 65 percent after lawmakers in February could not agree on another extension (6/29). This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.