Cobra Subsidy Law - Impact on New York Health Insurance Agents
Posted Apr 23 2009 12:21am
The New COBRA Subsidy Bill that subsidizes COBRA payments for workers who have recently lost their jobs, is causing some difficulties for New York health insurance agents. The subsidy pays for 65% of an eligible workers COBRA health insurance premiums for up to 9mo.
However, COBRA health coverage, and subsidy, do not apply to employer groups of fewer than 20 employees. For these groups, the New York continuation of coverage program (sometimes called mini-Cobra) applies. Under the “mini-COBRA” program, health insurance companies fund the subsidy and seek reimbursement from the government.
Apparently there is mass confusion among these small employer groups, the health insurance companies are supposed to be paying but they are still trying to get a handle on the situation.
For more information there is guidance on this situation at www.ins.state.ny.us.
The New COBRA Subsidy Bill that subsidizes COBRA payments for workers who have recently lost their jobs, is causing some difficulties for New York health insurance agents. The subsidy pays for 65% of an eligible workers COBRA health insurance premiums for up to 9mo.
However, COBRA health coverage, and subsidy, do not apply to employer groups of fewer than 20 employees. For these groups, the New York continuation of coverage program (sometimes called mini-Cobra) applies. Under the “mini-COBRA” program, health insurance companies fund the subsidy and seek reimbursement from the government.
Apparently there is mass confusion among these small employer groups, the health insurance companies are supposed to be paying but they are still trying to get a handle on the situation.
For more information there is guidance on this situation at www.ins.state.ny.us.