-
- COBRA stands for the "Consolidated Omnibus Budget Reconciliation Act of 1985"Department of Labor: FAQs About COBRA Continuation Health Coveragea
- Participants may keep COBRA for up to 18 months after leaving their qualifying employment.
- American Recovery and Reinvestment Act of 2009 (ARRA) provides for a 65% premium reduction in monthly costs for COBRAhttp://www.dol.gov/ebsa/faqs/faq-cobra-premiumreductionEE.html
-
-
COBRA was started in 1986 to provide employees and their dependents interim health insurance coverage after a job loss. Participants are able to continue their coverage through a former employer for up to 18 months after leaving their job.http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML This page will walk you through how to apply for COBRA.
With the national unemployment rate nearing 9%, keeping your health insurance while you are not working is a major concern. Since 1985, the newly unemployed have been able to enroll in COBRA, which allows you to remain under your most recent employer's group health plan as long as you can pay the monthly premium in full. Since this premium can be prohibitively expensive, in February 2009 Congress included a 65% premium reduction for qualifying individuals' monthly COBRA costs.
Applying for COBRA and the federal subsidy is a relatively simple, if stressful process. Your employer is responsible for providing you all of the necessary forms promptly, and all you have to do is return them to ensure that you and your family's health care coverage will continue. -
2009 Stimulus Package
As part of the 2009 stimulus package, if you are laid off from your job between September 1, 2008 and December 31, 2009 and elect COBRA health insurance coverage, the government may cover 65% of your monthly COBRA costs. This page will also give you information on how to get the federal subsidy on your COBRA benefits.http://www.dol.gov/ebsa/faqs/faq-cobra-premiumreductionEE.html-
Step One: Determine if You are Eligible for COBRA
Not everyone is eligible for COBRA benefits. It depends on the size of your employer, whether you are considered a qualified beneficiary and the reason you are losing your current group health insurance.- Group health plans provided by employers with 20 or more part or full-time employees working more than 50% of the previous year's business days are subject to COBRA.http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html
- A qualified beneficiary is an employee, employee's spouse or employee's dependent child who is covered by the group health plan at the time of the event that causes the need for COBRA.
- A qualified event is also necessary to obtain COBRA coverage. These events include voluntary or involuntary termination of employment, as long as those reasons do not include gross misconduct.http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html
- For spouses and/or dependent children, additional events might also qualify them for COBRA, including divorce from or death of the employee with the health coverage.
It is important to note that in order to even be considered for COBRA coverage, you must have been enrolled in your employer's group health plan until your separation date and the plan must continue to be available for employees still on payroll.
-
Step Two: Elect COBRA Coverage
- Your employer must notify their health plan administrators that you have become eligible for COBRA within 30 days. You must then be sent an election notice within 14 days after that.
- You have 60 days from your separation date to elect COBRA coverage, and 45 days from your election date to pay your first premium.http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html
The election notice varies from state to state but generally consists of a couple simple forms. Just make sure to get these in within 60 days to take advantage of COBRA coverage.
-
-
Step Three: Find out if You Qualify for the COBRA Premium Subsidy
As part of the 2009 stimulus package the federal government will cover 65% of your COBRA healthcare premiums for up to 9 months. There are some criteria you will need to make sure you meet to receive this subsidy:- You will need to have lost your job in an involuntary manner between September 1, 2008 and December 31, 2009.
- You must qualify for, and elect, COBRA coverage.http://www.dol.gov/ebsa/faqs/faq-cobra-premiumreductionEE.html
- You must earn less than $125,000 for the year ($250,000 for married couples filing jointly). If you apply for the subsidy and end up earning more than this amount, you may end up having to pay back any subsidy amount in taxes.
Step Four: Apply for the Subsidy
Making sure you receive the subsidy is actually fairly simple. The election packet you receive from your employer will contain the necessary forms to fill out and send in to receive the subsidy amount. You will not receive any payments; rather your monthly premium will be billed at only 35% of the full amount that would normally be due.You are eligible to receive the subsidy for up to nine months. The subsidy will end in less than nine months if:
- You become eligible for Medicare.
- You are eligible to elect coverage under a new employer provided group health plan, such as when you or your spouse get a new job.
- You come to the end of your COBRA coverage period.
- You fail to pay your remaining COBRA premiums on time.http://www.dol.gov/ebsa/faqs/faq-cobra-premiumreductionEE.html
How To Apply For Cobra (And Get The Federal Subsidy) Links Powered by Google
-
How To Apply For Cobra (And Get The Federal Subsidy) - Discussion
Discussion board for How To Apply For Cobra (And Get The Federal Subsidy)mahalo.com -
Laid off? COBRA insurance subsidy may apply. Here's how | Front ...
Laid off? COBRA insurance subsidy may apply. Here's how | Business | Chron.com - Houston Chroniclechron.com
How To Apply For Cobra (And Get The Federal Subsidy) News
-
Hare Calls on Congress to Extend COBRA Subsidy for Laid Off Workers
The federal economic stimulus package, starting March 1st, made available a 65 percent tax subsidy for nine months of COBRA benefits for workers laid off ... (December 14, 2009)WGIL Radio News -
Steps to Take Before Cobra Subsidy Ends
Roberta Mason, age 63, of Turner, Me., in a few weeks will lose the federal subsidy for her Cobra health insurance premium, which has helped her afford ... (December 11, 2009)New York Times -
COBRA subsidy will end this year
To get the subsidy, people cannot be eligible for Medicare or another group plan, including a spouse's health insurance. Income limits and other rules apply ... (December 11, 2009)Rocky Mount Telegram -
For many, benefits from health care legislation are years away
The House bill would immediately give people who have left their jobs the right to extend company insurance, known as COBRA, for years longer, ... (December 14, 2009)Baltimore Sun
Mahalo Answers for How To Apply For Cobra (And Get The Federal Subsidy)
-
What if you lost your job in 4/08 and dont have benefits? Will COBRA be extended past the 18 months max? 4 AnswersBear with me on this answer....unfortunately the stimulus bill is not going to help anyone on COBRA unless they lost their job after 9-1-08. It is as simple as... read more -
First time home buyer tax credit, how do I apply for one? 2 AnswersYou don't. You just claim it, the same way you claim any other credit on your income tax forms. Which means it's up to you (or your tax preparer) to make sure y... read more -
how can i apply for amazing race for this year? 1 AnswerYou can apply right here for amazing race 16 -> http://www.cbs.com/casting/index.php?show=1&0.0854763388811694 Applications don't look to be open at the mom... read more -
I applied for a job at an Apple store. The site said the position was available. How long should I expect to wait if I were to get the job? 2 AnswersAfter applying and hearing that the job is available, my policy is to wait a week before contacting a manager. You don't need to pry too much, just say, "hi, my... read more
About this page
-
Page Views768


