Stimulus Package COBRA

Communications            Alabama, Florida, Georgia.                3516 Covington Highway 

Workers of America      Kentucky, Louisiana, Mississippi            Decatur, Georgia  30032

District 3                        North Carolina, South Carolina             404-296-5553

AFL-CIO                             Tennessee, Puerto Rico                                    404-299-6165 Fax

March 3, 2009

TO:           All District 3 Local Presidents and Staff

FROM:       Beverly A. Hicks

                Vice President – District 3

RE:           Stimulus Package helps Laid-Off Workers

Partially subsidized COBRA coverage. Employers are currently required to offer COBRA continuation health coverage for up to 18 months when you leave your job. But former employees must pay the entire cost of the insurance plus a 2 percent administrative fee. Many workers eligible for COBRA never take advantage of this health coverage through their former employer because the premium cost is too high. The American Recovery and Reinvestment Act says that workers who lost or lose their job between September 1, 2008 and December 31, 2009 as a result of the economic downturn would be eligible to receive a 65 percent subsidy towards their COBRA premium for up to 12 months. The Congressional Budget Office estimates that this package will help over 8.5 million people keep health care coverage for themselves and their families.

This will help our members laid off for economic reasons since September of 2008.

Thank you President Obama.