With the economy in serious trouble, many Americans are afraid of losing their jobs and health insurance. President Obama has recently made COBRA revisions so that unemployed individuals don't have to worry about calling a different health insurance company. COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, was passed by congress in 1985 so people who lost their jobs could continue to receive health insurance benefits through their employer. Any employer who has more than 19 employees must offer this health insurance plan to their employees and their families for a minimum of 18 months. Since 2009, President Obama has extended benefits and lowered premiums to provide additional relief to unemployed individuals and their families.

The COBRA health insurance plan not only covers the employee but also their dependent children, spouses, former spouses, and widows in case the employee should die. Federal law requires employers who have more than 19 employees to offer continuation of health insurance coverage to laid-off workers for 18 to 36 months. If employers fail to abide by the law, they could face stiff penalties. Companies could be fined up to $100 a day for every individual not given a health insurance plan that and qualifies for it.

Before President Obama signed The American Recovery and Reinvestment Act (ARRA), which provided a COBRA premium reduction, health insurance plans were too expensive for unemployed individuals to afford. The average cost of COBRA insurance was over $1,000 per month for an entire family and approximately $410 a month for an individual. This was an outrageous amount of money for people to pay who were unemployed and living on a limited income.

Since 2009 employers have been mandated to pay 65% of the premiums and later reimbursed by the government. Unfortunately, the premium reduction is only available to employees who were terminated after May 31, 2010. However, workers who previously qualified for the reduction may continue to pay low premiums for 15 additional months unless they are eligible for Medicare or are able to obtain coverage through another health insurance company.

COBRA is extremely beneficial for people who are over 50 years of age, in poor health, or required to take expensive medications. COBRA has made a huge difference for employees and their families across the nation. Many individuals depend on COBRA health insurance plans to keep their families healthy. Sadly, President Obama failed to extend lowered premiums for COBRA insurance coverage, so Americans will soon be facing more financial hardship because of the economy and be forced to purchase coverage from a different health insurance company that may offer less coverage and be more costly than COBRA.