Update: COBRA’s extinction will add millions to rolls of uninsured

Members of the U.S. House of Representatives approved an extension of unemployment benefits to Nov. 30, retroactive to June 2. COBRA health insurance subsidies were not included in the legislation.

Charles Rangel

The Senate already approved the measure, and President Barack Obama was expected to sign it later today (July 22).

The American Jobs and Closing Tax Loopholes Act of 2010, sponsored by Charles B. Rangel (D-N.Y.), marks the eighth extension of unemployment benefits in the last two years. However, unlike prior extensions, it does not continue COBRA benefits, which will need separate action by Congress.

Several million people, who lost their unemployment benefits since the program became unfunded June 2, will now have those benefits restored for another five months.

Those who received COBRA subsidies prior to June 1 will continue to receive those benefits. Workers who lost their jobs after June 1 will not be eligible for the health insurance subsidy of 65%, making health insurance too costly for many newly unemployed.

Funding of the initiative was seen as the main reason COBRA was not part of the benefits package.