The economic stimulus bill, which was recently passed by Congress and is expected to be signed by President Obama today, includes help for unemployed individuals who are struggling to maintain their health insurance under COBRA. The Los Angeles Times’ Melissa Healy notes that there have been a lot of questions swirling about the topic. Here is an FAQ:
Q: Who qualifies for a COBRA subsidy?
A: Anybody who 1) worked for an employer that is required to offer a COBRA health care coverage extension (some smaller employers aren’t), 2) earns under $150,000 as an individual or $250,000 for a joint tax return, and 3) was either laid off after Sept. 30, 2008 or is laid off between now and Dec. 31, 2009.
Q: How much does the COBRA subsidy cover?
A: The government will subsidize 65% of your premium, paid directly to your former employer.
Q: How long will this subsidy last?
A: It lasts for 9 months in total, including retroactive payments.
Q: What if i’ve been paying the entire COBRA premium myself?
A: In that case, you will be reimbursed for 65% of your premium dating back to Sept. 30, 2008; either in credit for future COBRA payments or a refund if you’re no longer enrolled. You will then have around 4 months left of subsidized COBRA health coverage.
Q: What can I do if I’ve been laid off and didn’t enroll in COBRA because it was too expensive?
A: Employers will be required to allow you another opportunity to sign up for the program.
Q: Do I have to provide proof of income to apply for COBRA?
No, but if it turns out that you make more than the upper limit, you’ll have to pay the subsidy back.
I hope this post has answered some of your questions about COBRA health insurance.
(Photo credit: abraaten under CC 2.0)
The economic stimulus bill, which was recently passed by Congress and is expected to be signed by President Obama today, includes help for unemployed individuals who are struggling to maintain their health insurance under COBRA. The Los Angeles Times’ Melissa Healy notes that there have been a lot of questions swirling about the topic. Here is an FAQ:
Q: Who qualifies for a COBRA subsidy?
A: Anybody who 1) worked for an employer that is required to offer a COBRA health care coverage extension (some smaller employers aren’t), 2) earns under $150,000 as an individual or $250,000 for a joint tax return, and 3) was either laid off after Sept. 30, 2008 or is laid off between now and Dec. 31, 2009.
Q: How much does the COBRA subsidy cover?
A: The government will subsidize 65% of your premium, paid directly to your former employer.
Q: How long will this subsidy last?
A: It lasts for 9 months in total, including retroactive payments.
Q: What if i’ve been paying the entire COBRA premium myself?
A: In that case, you will be reimbursed for 65% of your premium dating back to Sept. 30, 2008; either in credit for future COBRA payments or a refund if you’re no longer enrolled. You will then have around 4 months left of subsidized COBRA health coverage.
Q: What can I do if I’ve been laid off and didn’t enroll in COBRA because it was too expensive?
A: Employers will be required to allow you another opportunity to sign up for the program.
Q: Do I have to provide proof of income to apply for COBRA?
No, but if it turns out that you make more than the upper limit, you’ll have to pay the subsidy back.
I hope this post has answered some of your questions about COBRA health insurance.
(Photo credit: abraaten under CC 2.0)