Cobra Coverage Extended for Unemployed

President Obama's 2011 budget contains a proposal to subsidize 65% of the COBRA premiums paid by workers who lose their jobs between March 1 and the end of 2010.  These employees are eligible to continue their health care coverage under the federal law known as COBRA.  The subsidy would continue for 12 months and extend the popular program under which those who were laid off between September 2008 and February 2010 get a 65% break on their COBRA premiums for up to 15 months.  The federal government currently reimburses health plans for that 65%.  The proposal only covers those workers who are ineligible for other health care plans, through a spouse's employer or Medicare for example.  The subsidy also phases out for individuals earning in excess of $125,000 and families earning more than $250,000.  This proposal would enable more individuals and families to seek out the health care they need for accidents, injuries or illnesses, regardless of the current employment status of a family breadwinner.  Because many people cannot afford or chose not to purchase Medical Payments Coverage through their auto insurer, unfortunately many accident victims are left with injuries they cannot afford to treat and repair.  Insurance companies use this to their advantage, basing settlement offers on the small amount of medical care a victim received before being shut out from the health care system due to an inability to pay.