By THOMAS HARTLEY
Business First

The Buffalo-Niagara Falls area jobless rate rose to 9 percent in January, and some experts expect it to rise into double-digit figures by the end of 2009.

Present and future laid-off workers get a helping hand in the recently enacted federal stimulus bill, which lessens restrictions on unemployment benefits and assists them in keeping health-care coverage while also making it more affordable.

Here are several ways that it helps.

"There is no longer a tax on the first $2,400 in unemployment benefits," says John Slenker, an economist with the state Labor Department's Buffalo office. Previously, benefits were taxed 100 percent.

"Also, the benefit rate was increased by $25 a week (temporarily) and the number of weeks that benefits can be paid has been extended from 26 to 59," he says.

Unemployment benefits also will continue a 33-week expansion, extending the period to 59 weeks.

Unemployed workers also will receive financial help with their health insurance, which would be dropped by employers if they lose their jobs not by choice.

Mark Stulmaker, who specializes in employee-benefits law, said this is "by far" one of the biggest benefits for employees in the stimulus package.

Under the stimulus, the federal government will pay 65 percent of the health insurance premiums that unemployed workers pay under the COBRA program.

COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, lets laid-off workers keep the same health coverage that they had at their old jobs.

COBRA costs

COBRA is expensive.

"This subsidy is a pretty big help to people who otherwise are looking at $1,000-a-month premiums for families," said Stulmaker. He represents pension and health-care funds for the Buffalo firm Lipsitz Green Scime Cambria LLP.

The benefit, which is available to employees who were laid off after Sept. 1, 2008, will continue through Dec. 31, 2009.

"Without it, people basically don't get coverage, because they can't afford it. This (subsidy) also gives people who didn't take COBRA a second chance to get it," he said.

Workers who didn't sign up for COBRA coverage will have an extra 60 days to reconsider.

COBRA gives workers the right to choose to continue group health benefits provided by their group health plan for a limited time under certain circumstances, including job loss.

Under the stimulus package, the COBRA subsidy is limited to workers whose incomes are less than $125,000 for individuals and $250,000 for couples filing jointly.

In New York, the typical monthly cost of COBRA family coverage is an estimated 85 percent of a worker's average monthly unemployment benefits, according to Slenker.

Aside from COBRA assistance, the stimulus program provides only indirect benefits, said Robert Doren, managing attorney of Bond Schoeneck & King PLLC's Buffalo office.

These come to employees in the form of financial assistance for some of the sectors they work in, such as construction and public transportation, where highway and bridge projects will benefit.

"But that will take a period of time before it gets there. In my opinion, the (stimulus benefit) is all trickle-down effect, assuming there is any trickle-down at all," said Doren, who specializes in labor and employment law for management.