House Lawmakers Approve COBRA Subsidy Extension
December 16, 2009 (PLANSPONSOR.com) – The U.S. House of Representatives on Wednesday approved a bill that would extend federal COBRA health coverage cost subsidies for involuntarily terminated employees.
http://www.plansponsor.com/House_Lawmakers_Approve_COBRA_Subsidy_Extension.aspx
Subscribe to:
Post Comments (Atom)
2 comments:
President Obama has signed the bill and it is now the law. Here's a statement from the federal government:
Washington, D.C., December 21, 2009 – Phyllis C. Borzi, Assistant Secretary of the Employee Benefits Security Administration (EBSA) today released the following statement regarding the Consolidated Omnibus Budget Reconciliation Act (COBRA) and the recent extension of the premium reduction under the COBRA subsidy:
“I am pleased Congress has acted and the President has signed the Fiscal Year 2010 Defense Appropriations Act. The actextends the eligibility period for the ARRA premium reduction for an additional two months (through Feb. 28, 2010) and the maximum period for receiving the subsidy for an additional six months (from nine to 15 months). Millions of unemployed Americans and their families will be better able to afford and keep their health benefit coverage because of this new law.
“Individuals who had reached the end of the reduced premium period before the legislation extended it to 15 months will have additional time to pay the reduced premiums related to the extension. To continue their coverage they must pay the 35% of premium costs by (60 days after date of enactment) or, if later, 30 days after notice of the extension is provided by their plan administrator.
“We encourage you to subscribe to our COBRA Web site, www.dol.gov/cobra, to get information on new notice requirements, updated guidance, fact sheets, and frequently asked questions as they become available.
“Individuals should contact their plan or health insurance provider for information regarding the extension under their health plan. If you need further assistance contact an EBSA Benefits Advisor toll-free at 1-866-444-3272.”
From the Wall Street Journal and FDLI Smart brief:
"Cobra requires companies with more than 20 employees that already offer group health insurance to continue the insurance for former employees for up to 18 months. But insurance costs under Cobra have gotten so expensive that many people can't afford even their unsubsidized 35% portion. Meanwhile, millions of workers don't qualify for Cobra in the first place, because the law doesn't cover the self-employed or those working for companies that abruptly shut down or are too small, or those who didn't offer health insurance to begin with. The subsidy also is off-limits to individuals who have been unemployed the longest; only those laid off since October 2008 are eligible."
http://online.wsj.com/article/SB126204429939308069.html?mod=dist_smartbrief
Post a Comment