Durbin: Stimulus Bill Provides Health Insurance Payments and Unemployment Benefits to Illinois Families in Need

Press Release

U.S. Senator Dick Durbin (D-IL) today discussed additional resources made available through the recently passed economic recovery legislation to unemployed workers in Illinois, including COBRA health insurance payments and unemployment benefits.

The recovery legislation is expected to provide over 820,000 jobless workers in Illinois with an additional $25 per week in benefits, and to provide over 140,000 jobless workers in Illinois with benefits through the end of 2009 who otherwise would have lost benefits at the end of March.

"Extending and improving unemployment benefits is not only the moral thing to do to aid Illinois families, but it will also breathe some life into our struggling economy," Durbin said. "Putting money in the hands of unemployed families means they will be able to pay their rent and utility bills, buy groceries and clothe their children. It is money that will create economic growth in America.

"The average monthly unemployment benefit in Illinois is just over $1,300, while the average monthly family COBRA premium is just over $1,100," Durbin said. "For a newly unemployed breadwinner, it would take their entire unemployment check and more to continue vitally important health coverage for themselves and their families."

COBRA allows people in firms with 20 or more employees to continue paying for health coverage -- at the group rate -- after leaving their employer or losing their job. In general, COBRA requires that most employers allow former workers to remain in the employer's group plan for 18 months. The former employees have to pay the full cost and up to a 2% administrative fee. If they can afford to, workers may continue health coverage not just for themselves, but also for their family.

"The COBRA premium assistance is expected to help 7 million Americans, including tens of thousands here in Illinois, giving them the peace of mind that comes with knowing that their health insurance will still be available." Durbin said.

Laid-off workers who have declined COBRA and tried to find coverage in the individual health insurance market run into major problems if they have any pre-existing conditions. Subsidies for COBRA coverage can help unemployed Americans across all income levels continue the health insurance that was provided through their prior employers. The Department of Labor is working to distribute the $25 billion to help people who lost their jobs and want to keep their COBRA health coverage but cannot afford to do so.

For those who have lost their jobs since September of 2008, the federal government will pay 65% of the COBRA premium for up to 9 months. In the coming days, employers and health plans will send notices to former employees about the assistance. Unemployed individuals are encouraged to reach out to their former employer and ask about this assistance if they do not hear anything soon.

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