President Obama has allowed unemployed workers by signing a legislation to receive subsidized COBRA premiums for up to 15 months. This step has bought relief to thousands of laid-of workers.

The subsidy previously expired after nine months.

The cutoff for eligibility for the COBRA subsidy has also been extended from December 31 this year to February 28, 2010.

COBRA allows workers to continue their former employer's health insurance coverage for up to 18 months after leaving their jobs.

Phyllis Borzi, assistant secretary of the Employee Benefits Security Administration, putting a condition on the step said that those who pay 35 per cent of the premium were under COBRA coverage.

This step has also witnessed an increase in the number of people who opted to continue their former employer's coverage. COBRA enrolled double from March to June. More than 14 million people were eligible for subsidized COBRA with unemployment at a 25-year high, according to Hewitt associates.