COBRA health insurance subsidies now available

http://www.sacbee.com/273/story/1787293.html

COBRA health insurance subsidies now available
Published: Friday, Apr. 17, 2009 - 12:00 am


Employers and health plans have until Saturday to notify laid-off employees of COBRA health insurance subsidies now available under the federal stimulus plan.

With unemployment at historic highs, the U.S. government has authorized $25 billion to help an estimated 7 million laid-off workers retain health coverage. The subsidies pay 65 percent of COBRA premiums and apply to those laid off between Sept. 1, 2008, through Dec. 31 this year.

On average, the typical family pays $1,069 a month to continue employer- sponsored health coverage, according to Families USA, a health advocacy group based in Washington, D.C.

For many, the cost is prohibitive, the group said, leaving millions of Americans uninsured.

Those involuntarily unemployed since Sept. 1, 2008, are eligible for the 65 percent subsidies even if they declined COBRA coverage when they first lost their jobs.

Company health plans are required by the American Recovery and Reinvestment Act, signed into law in February, to notify workers of their second chance to enroll in COBRA. If they haven't been notified, workers should contact their former employer or health plan provider.

The U.S. Labor Department has a telephone hotline, (866) 444-3272, to answer COBRA questions. Or go to www.dol.gov/COBRA.

We haven't had layoffs but I know a couple of guys that were just fired (for lack of production, but they were replaced with new people) since September.

Neither of those guys are getting COBRA either.

And they were fired with good reason. I mean, one dude was sitting in the back watching tv and not really doing anything at work. They give you plenty of warning to get your act together and neither one was really even trying.


edited to add: I checked out the Dept. of Labor website an it just says the reduction is available for anyone that was eligible for COBRA, and that doesn't change if your fired/laid off (unless it's for gross misconduct).

According to what I have read, you must meet all of the following three conditions:

1. You were involuntarily terminated on or after September 1 2008.

2. You are or were eligible for COBRA coverage at any time on or after 9-1-2008, whether you initially elected it or not.

3. You are not eligible for Medicare or any other group health plan coverage as a dependent on another family member's plan or a new employer's plan.
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The difficulty many who are eligible will face is paying for the remaining 35%.

Thanks. I should tell those guys. :)

It's definitely something, and I'm not knocking it - something is definitely better than nothing. But a lot of us who are laid off/unemployed can't afford that remaining 35% anyway, so it won't do much for those in that boat.

Her unemployment is helping to pay for her mortgage while she 'prays' she finds a job soon. Not easy for a single homeowner who is 54 but has worked all her life. She really needs meds, too, but she also needs a roof over her head. :(

of "aging out" of our family coverage... It's been nearly 6 months so I don't think he can get it.

of coverage - only the employees who were laid off/involuntarily terminated. "Overage dependents" still have to pay full price for the 36 months of COBRA they are eligilbe for. But several states have extended the eligibility for dependents to age 26 to stay on their parents policy. CT, MA, MN and IA are the ones I am aware of but it is a growing trend.