Eligible Employees Who Lost Job Only Pay 35% of COBRA Health Insurance Premium Payments
The American Recovery and Reinvestment Act of 2009 expanded eligibility for COBRA and provides a premium reduction to certain qualified individuals who lost their job on or after September 1, 2008 through December 31, 2009. The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 is a health benefit allowing qualified terminated employees to continue their health care coverage until they find another job that provides employer sponsored health insurance.Under Obama's Stimulus Package, you may be eligible for a 65% reduction in COBRA premiums as soon as March 1, 2009. Your employer should notify you if you are eligible for COBRA and if you are eligible to receive the premium reduction. If your employer does not inform you about the COBRA premium reduction, contact one of the sources at the end of this article. If you are already on COBRA, you will not receive a reduction for premiums already paid, but you can apply for reductions in the remaining COBRA payments you will make after March 1, 2009.
COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. Employees that had a reduction in hours leading to loss of benefits may also qualify for COBRA. Once you have been approved for COBRA, you make the premium payments for your health insurance. The length of time you are allowed to receive health benefits under COBRA varies depending on your situation.
In this bad economy, individual health insurance coverage can be prohibitive, and for many who just lost their job, even COBRA premiums are beyond reach. Under Obama's Stimulus Package, you might be eligible for reduced premiums in which the federal government will reimburse employers 65% of the COBRA premium and charge you only 35% of the COBRA premium. In many cases, this means the difference of you paying $245 - $280 per month instead of $700 - $800 per month for your health insurance coverage while you are unemployed.
Comments
Cindy Tatum
(Guest)
(Guest)
01/25/2010
I had to go on FMLA for surgery Nov. 23rd and have not been paid since. To make matters worse, I received notification from my employer that I was seperated on Jan. 5th, 2010. I am (was) the only employed insurance person in the family. Would I qualify for the stimulus?
Kathy - on Page 2 of this article is a phone number you can call to speak with a consultant about the COBRA premium reduction. They will be able to answer your question about the vacation time. Best wishes.
Kathy
(Guest)
(Guest)
01/15/2010
My husband was let go from his job in 2008. His pink slip says his last day worked was August 18, 2008, but he also had 2 weeks vacation coming to him. This took him past September 1st. His former employer did not provide any information concerning the reduction of 65% in the COBRA payments. Does the 2 weeks of vacation he had not extend his employment past the cutoff date of September 1st? We have been paying $758 per month for 17 months now and have just become aware of the 65% reduction. Shouldn't his former employer have imformed him about this, and shouldn't we be elligible for both the reduction in monthly premiums and in the extension. Please advise ASAP. Thank you!
Paula Miller
(Guest)
(Guest)
12/07/2009
My employer changed insurance companies without notifyiny me. I had a visit at the emergency and now I am told that my deductible is no longer valid so now I have to pay total amount. Is this ethical since I was not notified in advance?
Representative Joe Sestak (D-PA), a member of the House of Representatives Education and Labor Committee, introduced the Extended COBRA Continuation Protection Act (H.R. 3930) on October 26, 2009. H.R. 3930 would extend the ARRA COBRA subsidy eligibility to those who are involuntarily terminated between January 1 and June 30, 2010 and extend the maximum period of assistance to 15 months. H.R. 3930 also includes a six-month extension of COBRA coverage.
There are bills in the House and the Senate to extend certain aspects of the American Recovery and Reinvestment Act of 2009. Unemployment and COBRA are under consideration in these bills. WRITE YOUR FEDERAL CONGRESSPERSON AND DEMAND THAT THEY EXTEND THESE BENEFITS INTO 2010!
Debbie
(Guest)
(Guest)
11/12/2009
Oops, I meant awaiting word.
Debbie
(Guest)
(Guest)
11/12/2009
My cobra insurance people told me that they have been awaiting work on the extension after December. I also hear you and I had open heart surgery two weeks ago out of the blue a doctor spotted I needed a valve replacemement, so although happy happy happy to be alive I could really appreciate the stimulus package continued, at the reduced rate. For sure, for sure. Peace!
Debbie
(Guest)
(Guest)
11/12/2009
My cobra insurance people told me that they have been awaiting work on the extension after December. I also hear you,,,,,,,,,ouch,,,,,,,,,and I had open heart surgery, two weeks ago, out of the blue, a doctor spotted I needed a valve replacement,,,,,,,,,,,,so although happy happy happy to be alive,,,,I could really appreciate the stimulus package continued. For sure, for sure. Peace!
Kandi
(Guest)
(Guest)
11/10/2009
I also want to know if anybody has heard if the reduction in premium will be extended after Dec 2009? If not, I will have to pay $429.00 for my individual plan verses $162.00. OUCH....!!!
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