News Headlines Article

White House backs health premium subsidy
Modern Healthcare

The Obama administration is backing a temporary boost in federal subsidies of health insurance premiums, such as COBRA coverage, for workers who lose their jobs due to foreign competition and older retirees in failed pension plans. A 2002 law created the subsidy, the Health Coverage Tax Credit, and set a federal tax credit of 65%. In 2009, the economic stimulus law raised the credit to 80% through Dec. 31, 2010. Last year, Congress approved a temporary extension through Feb. 13.