There is a new law, signed into law by Rhode Island Governor Donald L. Carcieri, which provides COBRA access for additional workers. Those workers laid off from small businesses now are eligible for the subsidy.
Under the American Recovery and Reinvestment Act of 2009, everyone else in the country has access to the 65 percent COBRA subsidy only if they worked for a company with more than 20 employees. This Act was included as part of the economic stimulus package.
This new Rhode Island law allows all laid off employees in the state to apply for the short term health insurance benefit under COBRA. Previously laid off employees, since Sept. 1, 2008 have to apply by May 1, 2009 to enjoy this extension.
Rhode Island legislature discovered the small business employees were not included in the subsidy within days of the federal bill passage and moved quickly for a procedural change in the state law. The reason they acted so quickly was there was a April 17 deadline imposed by the federal government to make changes, according to the Providence Journal.
"Hundreds of Rhode Islanders will now be able to sign up for this program and it will be more affordable for everyone because of the federal subsidy. At the end of the day, this is just about giving more Rhode Islanders that are hurting right now -- who are out of work and struggling for health insurance -- the help they need to get the benefit and reduce expenses," said Governor Carcieri.
Under the American Recovery and Reinvestment Act of 2009, everyone else in the country has access to the 65 percent COBRA subsidy only if they worked for a company with more than 20 employees. This Act was included as part of the economic stimulus package.
This new Rhode Island law allows all laid off employees in the state to apply for the short term health insurance benefit under COBRA. Previously laid off employees, since Sept. 1, 2008 have to apply by May 1, 2009 to enjoy this extension.
Rhode Island legislature discovered the small business employees were not included in the subsidy within days of the federal bill passage and moved quickly for a procedural change in the state law. The reason they acted so quickly was there was a April 17 deadline imposed by the federal government to make changes, according to the Providence Journal.
"Hundreds of Rhode Islanders will now be able to sign up for this program and it will be more affordable for everyone because of the federal subsidy. At the end of the day, this is just about giving more Rhode Islanders that are hurting right now -- who are out of work and struggling for health insurance -- the help they need to get the benefit and reduce expenses," said Governor Carcieri.
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