Americans who lost a job in the last 18 months are able to stay on or join their former employer's health care plan for free through Sept. 30. That provision of the American Rescue Plan Act went into effect April 1.
More than 2 million people could benefit, according to the Congressional Budget Office.
The way it works is through the federally administered program known as COBRA. If you work at a company with more than 20 employees and lose your job, you can remain on your employer-sponsored health insurance plan for 18 months through COBRA.
But under normal circumstances, COBRA can be significantly more expensive than employer-sponsored insurance. But COBRA is now free through the end of September. Here's how it works.
Who qualifies? Under the relief bill, anyone is eligible who has involuntarily lost their job or health insurance or had their hours reduced within the last 18 months.
Benefits are available to all those normally insurable under COBRA, meaning you and the family members who were already on your health plan.
Who doesn't qualify? Anyone who voluntarily left their job or chose to reduce their work hours. Also, if you were fired for gross misconduct, you and your dependents are not eligible for COBRA.
If you already have health insurance, whether through the government or your employer, you are not eligible to enroll in subsidized COBRA.
