Recently, the U.S. House of Representatives had just approved measures that extend relief for unemployed workers, who have lost their jobs due to the current economic recession. This measure is called the “American Recovery and Reinvestment Act”, and provides access to health care coverage as well as tax relief, to American citizens who are now jobless. The main goal of this act is to accomplish the following:
To stimulate the nation’s economy through job availability and security.
To provide financial relief and healthcare benefits to unemployed and uninsured citizens.
State assistance, as defined under the American Recovery and Reinvestment Act.
Under this measure, an estimated amount of $544 billion has been authorized towards new spending for access towards affordable health care coverage. In addition to this, another $275 billion has also been authorized in tax cuts. All of this effort is being put forth to maintain continuing health care coverage for 8.2 million American people.
It has been forecasted that millions of Americans would be affected by the recession, and with it, millions of jobs will be cut off as a result of difficult economic times. Not only do the work cuts and lay-offs affect the workers, but so are the families who depend on this financial support and health insurance benefits. Funding would be filtered through Medicaid programs, which will screen and monitor qualified applicants who meet certain requirements, such as- immediate assistance availability for unemployed workers, and their families or dependants, as long as they show proof of active search for employment.
Some of the federal funds would also be distributed to hospitals, clinics, doctors, and pharmacies. In return, these professional institutions would agree to employ adequate staffing to meet the healthcare needs of those who have unemployment health benefits, as well as their families or dependants. Also, bankruptcy relief is also extended to families of the unemployed, provided that they can furnish proof of financial hardship.
As the unemployment rate continues to skyrocket, so do the numbers for people who are not medically insured. For those who decide to continue with the same health insurance plan benefits, meaning that they chose not to apply for Medicaid government benefits, there is an allowance through COBRA that allow them to do so. COBRA stands for- Consolidated Omnibus Budget Reconciliation Act (COBRA), and it allows unemployed workers to maintain their current health insurance benefits for up to 1.5 years. In order to keep these benefits, the plan subscriber would have to make payments of 102 percent of whatever the cost of coverage may be. This can be a significant advantage since most plan benefits carry certain advantages over conventional plan benefits. This is only made possible because of special rates and plan packages that are exclusive to certain businesses and companies.
So in a nutshell, here is a review of the American Recovery and Reinvestment Act for unemployed American citizens:
Government aid for up to 65 percent of COBRA premiums, up to a maximum period of one
year. Applicable only for unemployed workers who lost jobs from September 1, 2008 to
December 1, 2009.
Government funding for state Medicaid programs that provide coverage to: unemployed and
uninsured workers, including families and/or dependants.
Extended COBRA benefit coverage for senior employees who were laid off from long-term
jobs, until they can obtain health insurance through future employers, or qualify for Medicare
coverage.
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