Cobra Subsidy Extension for New Claims set to End on February 28
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 which contained a provision to help struggling families pay for their COBRA benefits. The plan reduced COBRA premiums by 65% and provided the recently unemployed with the ability to re-enroll in COBRA if they failed to sign-up initially, or signed-up but let their coverage lapse.
On December 19, 2009, the COBRA subsidy program was extended for an additional 6 months and eligibility for the program was expanded to cover workers who are laid off before February 28, 2010. Legislators are now working on a jobs bill that will include an as-yet undetermined extension of the current benefits.
The COBRA subsidy program currently covers workers who were involuntarily terminated between September 1, 2009 and February 28, 2010 and offers a 65% subsidy on premiums for a total of 15 months.
A few rules to keep in mind regarding the subsidy:
Employees who quit their jobs can still receive COBRA but aren't eligible for the subsidy.
Anyone eligible for other group health coverage such as a spouse's plan or Medicare are not eligible for the subsidy.
Participants are also not eligible for the subsidy if their modified adjusted gross income for the year they received the subsidy exceeds $145,000, or $290,000 for joint filers. The financial help is reduced proportionately for taxpayers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers).
The rules are fairly complicated. For more complete information, see The Department of Labor's Web site at www.dol.gov/ebsa/cobra.html.
For those of you who lost your jobs prior to September 1, 2008, or, for whatever reason, are not eligible for the COBRA subsidy, change in the form of healthcare reform is hopefully on the way. Until that time, Medicaid, Disability, State Insurance Pools, and Individual Health Insurance may provide some relief.
If you have any questions, please feel free to contact us.
.
On December 19, 2009, the COBRA subsidy program was extended for an additional 6 months and eligibility for the program was expanded to cover workers who are laid off before February 28, 2010. Legislators are now working on a jobs bill that will include an as-yet undetermined extension of the current benefits.
The COBRA subsidy program currently covers workers who were involuntarily terminated between September 1, 2009 and February 28, 2010 and offers a 65% subsidy on premiums for a total of 15 months.
A few rules to keep in mind regarding the subsidy:
Employees who quit their jobs can still receive COBRA but aren't eligible for the subsidy.
Anyone eligible for other group health coverage such as a spouse's plan or Medicare are not eligible for the subsidy.
Participants are also not eligible for the subsidy if their modified adjusted gross income for the year they received the subsidy exceeds $145,000, or $290,000 for joint filers. The financial help is reduced proportionately for taxpayers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers).
The rules are fairly complicated. For more complete information, see The Department of Labor's Web site at www.dol.gov/ebsa/cobra.html.
For those of you who lost your jobs prior to September 1, 2008, or, for whatever reason, are not eligible for the COBRA subsidy, change in the form of healthcare reform is hopefully on the way. Until that time, Medicaid, Disability, State Insurance Pools, and Individual Health Insurance may provide some relief.
If you have any questions, please feel free to contact us.
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