FoIB Rick B tips us to a little known, but well-established, Federal program that's been around since the early 60's. The Trade Adjustment Assistance program began in 1962 as part of a major labor law overhaul. It was originally intended to help workers whose jobs were shipped overseas by helping them obtain new jobs at pay similar to their previous employment. It's since been expanded to offer additional benefits.
Unlike "regular" unemployment compensation coverage, TAA funds are accessed by groups of laid-off folks: a group of newly unemployed workers file with the Department of Labor, if that group is approved each person in it can then apply for the services and benefits that he or she needs.The criteria seems to be based on proving that these workers' jobs have been sent outside the country (or they've suffered a significant reduction in hours and income as a result of outsourcing). Rick believes that this program is a major reason why Michigan and Ohio (with relatively high unemployment rates) still sport a lower than average percentage of uninsureds. Part of that reason is that the taxpayer picks up 65% of one's group insurance premium (deja vu all over again) for up to two years, and the new COBRA/ARRA program expanded that rate to 80%.
Interestingly, this newly expanded subsidy comes via a mechanism called the Health Coverage Tax Credit, which is now available to eligible employees retroactively: the newly expanded program provides eligible employees "with retroactive payments to help cover up-front costs of obtaining health coverage prior to the start of HCTC." It also applies, to some extent, to individual states' "mini-COBRA" programs.
Of course, if someone else is picking up 80% of your tab, it's a lot easier to afford to stay on the plan. Rick posits that the TAA was essentially a starting point for COBRA/ARRA: after all, why start from scratch? That makes a lot of sense, since it's an already established program easily adapted to other, similar efforts.
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