Laid Off Small Business Workers Saved By Rhode Island Extension of COBRA
Posted in Other - Business & Finance on April 25th, 2009 by Ethan Kalvin – Be the first to commentA new law is now in place after Rhode Island Governor Donald L. Carcieri signed the bill that assists laid off workers from small businesses. This bill gives the COBRA subsidy to these workers laid off from small businesses.
Under the American Recovery and Reinvestment Act of 2009, everyone else in the country has access to the 65 percent COBRA subsidy only if they worked for a company with more than 20 employees. This Act was included as part of the economic stimulus package.
Rhode Island workers from all companies who’ve been laid off now are eligible for COBRA as this new state law outlines. But, workers laid off after Sept. 1. 2008 must hurry and sign up by May 1, 2009 to take advantage of the eligibility.
Quickly after the Rhode Island lawmakers were made aware that laid off small business workers wouldn’t be covered by the COBRA subsidy, a procedural change was proposed, it was passed and signed. There was a April 17 federal deadline for changes, which is part of why the government moved so fast, reported by the Providence Journal.
Hundreds of Rhode Islanders will now be able to sign up for this program and it will be more affordable for everyone because of the federal subsidy. At the end of the day, this is just about giving more Rhode Islanders that are hurting right now ” who are out of work and struggling for health insurance ” the help they need to get the benefit and reduce expenses, said Governor Carcieri.


