Stimulus includes break on health care

PAWTUCKET, R.I. (WPRI) - For many of the thousands of unemployed people in Rhode Island, getting laid off wasn't just about losing a paycheck. Many of them also lost health care coverage for themselves and for their families.

However, some of those workers will now be helped by the federal stimulus plan.

The package cuts by 65 percent the costs for COBRA, the federal insurance program that allows laid-off workers to buy health benefits through their former employer.

The reduction starts immediately for workers who lost their jobs after Sept. 1, 2008. They can take advantage of the subsidy for up to nine months. Even eligible workers who originally opted out of COBRA can sign up for the subsidized version within 60 days.

That's welcome news for John Varela, who lost his job in December after working 22 years for a chemical plant in Coventry.

"I need all the money I can get. So, that will help out a great deal," said Varela.

Right now, he's paying $385 a month for health coverage just for himself. COBRA for a family can cost well over a thousand dollars a month.

Now, Varela is just left with the tough task of finding a job.

"There's nothing out there. You go online, you look. Even in Massachusetts. I tried Massachusetts, there's nothing in Mass, there's nothing nowhere," he said.