Q: What federal benefits are available to dislocated workers?
A: The United States enjoyed a growing economy and decling unemployment levels for much of the previous decade. But, fluctuations in the job market are bound to occur. A softening U.S. economy that began last year was further shaken by the terrorist acts on September 11th. The resulting lay-offs and corporate downsizings have put public pressure on elected officials to consider relief for Americans who find themselves out of work in the aftermath of the assault on America. In the airline industry alone, thousands of employees have been laid off since September 11th. Congress has taken action to assist the airlines in the form of guaranteed loans and enhanced airport security. Should the economy continue to falter, however, the government has a safety net in place to help the workers transition from one job to the next. Assistance programs include unemployment insurance, job banks, job training, career counseling, disaster unemployment assistance,and disaster relief fund grants. President Bush has proposed a number of other steps such as extended unemployment benefits and additional national emergency grants.
Q: How does federal law help dislocated workers keep their health care coverage?
A: COBRA health coverage was adopted as part of the Combined Omnibus Budget Reconciliation Act of [1986] to guarantee access to health insurance after a change in one's employment status. COBRA coverage provides qualified workers, their spouses and dependents an opportunity to continue their health insurance benefits for up to 18 months after losing their job. Certain situations may allow a worker to qualify for a maximum of 36 months. Eligible workers have 60 days to choose COBRA coverage and must be offered identical benefits to those received prior to qualifying for continuing coverage. Premiums are based on the group health plan with the worker paying up to 102 percent of the premium. Congress is now considering proposals that would help recently dislocated workers afford their COBRA premiums. Many workers are surprised to discover how much their monthly premiums cost because employers generally pay most of premium for active workers.