A new bill introduced in California may add as much as nine months to Cobra insurance coverage for workers laid off from smaller companies with up to 20 employees. The federal stimulus would fuel a subsidy to extend Cobra health care coverage via California Assembly Bill 23 (AB 23).
The bill imposes a number of restrictions on eligibility. Workers would have to have been previously insured who have lost their jobs between September 1, 2008 to the end of 2009. Limitations on income would also apply to the bill that would subsidize up to 65 percent of former workers' insurance coverage.
The bill is specifically aimed smaller businesses with fewer than 20 employees. Former workers are companies with 20 or more employees are already eligible for Cobra subsidies.