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Jobless to start losing federal healthcare subsidy

The first of thousands of unemployed Rhode Islanders will lose a federal stimulus subsidy tomorrow that has helped them afford temporary health insurance.

The subsidy allowed a 65% discount for COBRA, the law that allows those who have lost a job to buy group health insurance through their former employer for 18-months.

However, the stimulus only allows the COBRA subsidy for up to nine months.  Those who enrolled in March have reached the end of their eligibility.

Even with the subsidy, state Health Insurance Commissioner Christopher Koller told “The Providence Journal” he believes a significant percentage of jobless still can’t afford the several hundred dollars a month cost for family coverage under COBRA.

Senator Sheldon Whitehouse has co-sponsored legislation to increase the subsidy to 75% and extend eligibility from nine months to 15-months. [AP]

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