Based on the stimulus bill passed by Obama administration, I am sure you guys are going to have a lot of questions regarding the COBRA Package. I am going to try and answer some of them. And hopefully this information ends up helping you and your friends. After all in this economy, you never know who ends up being laid off and that is exactly when this package can help you and your family.
Q: First of all, everybody would like to know who qualifies for a COBRA grant?
A: Take heart in this answer that anybody who has worked for an employer where COBRA health care coverage is extended to the laid off employees qualifies for it. Generally small employers do not have to provide this coverage. Also, certain limitations apply like if you earn under 150,000 for an individual and 250,000 for a couple or if you lost your job between now and the end of this year (2009), only then will you fall under this plan.
Cobra Stimulus Insurance Coverage Cost
Q: How to find out whether you qualify for it or not, next logical question is, how much will COBRA cover ?
A: In this case the government of United States would cover about 65 percent of the premium. And this premium money would go directly to your former employer.
Q: How to apply for this program.
A. Most likely if your employer has this program covered in their policy, then if you are laid off, the company is supposed to automatically make it available as an option for you. Check with your manager or HR for further details.
Q: How long will this program last?
A: As of now, it lasts all of 9 months.
Q: Now comes the complexities like what happens if you (an individual) have been paying the premiums for the COBRA package.
A: Well, lady luck favors you. The government will reimburse you 65% of your premium dating back to Sept. 30, 2008; This can happen in the form of either credit for future COBRA payments or a refund if you’re no longer enrolled.
Thanks to Paul for pointing it below - “Subsidies will only apply to COBRA premiums paid after the effective date of February 17, 2009 and there will be no refund of premiums prior to this date.”
Q: Now lets say if you were fired from the company but since you initially found it too expensive, you did not enroll for the COBRA program. Can you re apply?
A: Government understand this scenario and it will give ask companies to allow the laid off individuals another shot at this opportunity.
Q: Any limitations, restrictions, proofs that I have to provide to apply for COBRA deal?
A. Well, guess what? No! But I am sure if the government finds out, lets say, that you made more than the upper limit of $150,000 then you might be in hot water. But government might just settle by getting the excess back from you.
Let me know if you have more questions and I will try to answer them.
My uncle past away several years ago and his wife just got health insurance through his job. so how do she get help with her insurance. it is survival insurance.