COBRA Benefits under Economic Stimulus: Who Gets What?
Written by Ann Pietrangelo on June 2nd, 2009 in Extras, Health Care Policy, In The News, Linked Articles.
The American Recovery and Reinvestment Act of 2009 (ARRA) includes opportunities for premium reductions and extended coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), but do you know whether or not you qualify… or how to obtain these benefits?
You qualify for premium reduction if your (or a family member’s) involuntary termination from employment occurred between September 1, 2008 and December 31, 2009. Eligible individuals will pay only 35 percent of the full COBRA premiums under their plans for up to nine months, and the rest will be reimbursed to the coverage provider in the form of a tax credit.
If you were offered, but declined COBRA coverage…
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December 3rd, 2009 at 10:54 am
I am on cobra, I voluntary terminated my employment and applied for cobra for the nineteen months. How does this law affect me.
December 3rd, 2009 at 2:48 pm
Carolyn,
Here is a link to the government explanation of COBRA benefits under the economic stimulus program.
http://www.dol.gov/ebsa/cobra.html
It says, in part, “The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months for those eligible for COBRA during the period beginning September 1, 2008 and ending December 31, 2009 due to an involuntary termination of employment that occurred during that period. The TAA Health Coverage Improvement Act of 2009, enacted as part of ARRA, also made changes with regard to COBRA continuation coverage.”
Since yours was a voluntary termination, you may not be eligible for assistance through the stimulus bill, but I advise you to check with your plan administrator. Hope that helps. Best of luck to you.