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 family will be going on COBRA in a few days. How do we apply for the stimulus coverage?
I need a clear definition of ‘terminated employee’! RE: Employee 1 was fired due to a failed drug screen. Employee 2 was fired due to fighting at work. Would either of these employees qualify?
Good question Pat. I don’t have the answers. I think we need a more comprehensive review of the bill to answer these questions.
My company is a 503(c) non-for-profit that does offer COBRA upon termination. If the 65% reimbursement goes to the company as a tax credit, and the company is tax exempt? What is the vehicle to enact this stimulus.
My husband was laid off from a non profit and the non profit told us we would still have to pay the premium until they found out more about the COBRA reimbursement plan. Where do you go for more information? We don’t really have the money to pay the 1,000 up front and be reimbursed later.
you can check with your Human resource manager, but most companies can register with the TRA since most jobs are affected by imports and jobs leaving the U.S. Once registered, your H.R. sends a lists of names layed off to TRA. The unemployed will recieve a package with the paperwork for COBRA, you then go to HR and he signs the paperwork for COBRA. HCTC (Health Care Tax Credit) pays 65% and you pay 35%. example: If your cobra will cost you $400.00 a month, you only pay…$140.00 a month, hctc pays $260.00. You can find this at http://www.dol.gov and http://www.irs.gov I hope this helps. Beleive me, we had to do our own research ourself, too. There is a deadline, so hurry.
How do I apply to get the 65% Cobra rebate?
How do I apply for the 65% cobra stimulus payment?
Thank you,
Sarah
Sarah, if your company offers COBRA program then in the event of severance, it is incumbent upon the company to make it available as part of the severance package. Talking to somebody in HR might help.
ONE ERROR ABOVE: Correct information is: “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.”
Do an internet search using the two words “COBRA” and “stimulus” to learn more and answer your own questions.
Yes. Please note Paul’s comment above. There will be no refund of premiums paid before February 17, 2009. I believe the date is actually March 1, 2009–no prorations for February premiums paid either.
I recently lost my full time status at work but was offered part time and was told that I would be eligible for COBRA. Since I still am employed part time and can go on COBRA, will the stimulus apply towards my situation??
How do I apply for the 65% cobra stimulus payment and what happends if your company is closing it’s doors and you do not have an HR department to take care of this.
Adoph, if your company provides COBRA then it is supposed to make it available as part of the severance package.
If the company is shutting down or no HR department exists, talk to a financial advisor for best options.
Karleen, not sure about your scenario.
Karleen,
You are not eligible for the COBRA subsidy…the 65% only applies to those employees who are involuntarily terminated. Reduction in hours does not apply.
Also, Pat Conner, In both of those situations if for unemployment puposes it was concluded that the employee showed gross misconduct and was not allowed rights, I believe they would not be eligible.
My husband was laid off in January 2009. His company agreed to continue to pay their share of 4 months of his medical premiums as part of his separation agreement. (February 1 through May 31, 2009). The company pays around 80% of the premiums – more than the 65% that the ARRA covers. Therefore, we would like to continue on the separation agreement terms and start the ARRA terms on June 1, 2009. How can we do this?
Thanks Ashley,
I thought maybe that would be the case. With the new Cobra plan, I think I do have the choice to a less expensive plan without waiting for the benefit enrollment period. Does anyone know if this is in fact, part of the new Cobra plan??
hi,my wife was terminated 0n august 8th 2008. Her severence package paid her full pay and kept on her full medical plan until January 8th 2009,at which point we began using cobra at $1200 per month. Since her last severence paycheck was for the week of January 8th 2009,at which time she began collecting unemployment,will she be eligible for the cobra benefit of the stimulus package.Thankyou for any insight into this
Ray
Millions of Americans who lost their jobs prior to September 1, 2008 could not afford Cobra. Millions more elected Cobra but have now depleted their resources and can not continue on. Still millions more with pre-existing conditions who rely on cobra to bridge the 18 month gap between their former employers insurance and their state’s high risk insurance pools are struggling to pay their premiums every month to prevent being locked out of insurance permanently.
Please join us in asking Congress and the Obama administration to eliminate the arbitrary September 1, 2008 cut-off date and 9 month limitation of assistance by signing our petition at ipetitions.com/petition/cobrareform and telling your friends about our efforts.
It should not just be for people laid off after 9/1/08. What about everyone that lost their job prior to then? That is not fair. It needs to be changed to include everyone paying for cobra.
Millions of Americans who lost their jobs prior to September 1, 2008 could not afford Cobra. Millions more elected Cobra but have now depleted their resources and can not continue on. Still millions more with pre-existing conditions who rely on cobra to bridge the 18 month gap between their former employers insurance and their state’s high risk insurance pools are struggling to pay their premiums every month to prevent being locked out of insurance permanently.
Please join us in asking Congress and the Obama administration to eliminate the arbitrary September 1, 2008 cut-off date and 9 month limitation of assistance by signing our petition at ipetitions under cobrareform and telling your friends about our efforts.
Does the income limit ($125,000 / $250,000) relate to when you were laid off (2008) or your 2009 income.
I was out on disability for some years. I was covered by my company. That company was taken over by another brokerage firm. I am disabled and have medicare. Do I qualify for COBRA???? This making medicare secondary as it is now. I was told because I am medicare eligible due to my disabiltiy that I don’t qualify for Cobra at all.
We all need assistance and certainly a disabled PAYING FOR MEDICARE needs help with a supplemental as well. Any advise???
I would leave Cobra alone if you have medicare. You really won’t benefit having both.
I was laid off in October, 08 and elected cobra coverage for my wife and I but due to the high cost and a rate increase I was forced to drop vision care followed by dental care and subsequently dropping my wife from the medical plan. Now with the stimulas plan I can again afford to add my wife to the medical plan. Is this program currently in place? Would this be allowable since I removed her form the plan at the end of January, 09? Open enrollment along with the increase in rates just passed (effective March 01). How do I apply? Thank you very much. Ron P.
This may be a dumb question, but I left an employer in the mortgage business that paid 100% commission. Common sence tells you that this wasn’t working for me. I am still in the same industry but with a salary. I have a 4 month grace peroid before my new insurance kicks in. Do I qualify for the cobra stimulas grant?
I was laid off in January, and my employer said this does not apply to her company because there are fewer than 20 employees(!). Does anyone know whether this is true?
I was laid off on feb 10,2009, but will be terminated on April 13, 2009.
My severance package included 6 Mos of Cobra premiums paid for by the company.
I won’t be paying Cobra premiums until around Oct 2009.
Should I apply for this stimulus package benefit now or in Oct if I’m still unemployed ?
Thanks
Vic
If my workweek was reduced to 24 hours per week (employer trying not to lay off employees) and I am required to go on COBRA (Texas has a minimum 30 hrs per week to be covered by employer insurance) can I still get the 65% COBRA stimulus subsidy?
my husbands co. closed they offered a cobra package we could not afford it.It’s been more than 90 days, can we apply for the cobra stimulus now?
I would like to know if I would be eligible for stimulus croba .I was terminatted while under a doctors care.jan.2009 the company has croba plan.I have called many times and can not get them on the phone.alltheir stores are open. i am 64 years old.Thank you
I was “terminated” because I was not able to return to work while being on medical disability through my company. I did receive COBRA paperwork, but was told that because I was not “laid off” I would not qualify for the stimulus package. In addition, my employer informed me that my “disability payments” are not actually disability, but considered “third party sick pay”. Now, I am going to get hit with a HUGE tax debt. Nothing like being kicked while you are down and out for the count.
What if you weren’t laid off but quit under distress?
What if an employee “voluntarily” left the company and then took a severance package. Do they qualify for the Cobra package?
If a severence package was offered, then even though they volunteered, it probably went on paperwork as lack of work…layed off.
I was laid off in Jan 09, due to lack of work. Funny the boss’ wife took my job. I have since signed up for Cobra & had to pay Jan & Feb & March premiums. I called Cobra provideer and asked when Cobra stimulus package takes place they said they didn’t know. Does anybody know?
I desperately need clarification re disqualification for spouse’s “group plan”. I was just laid off, and the company is declaring Chapter 11. When we realized my layoff was imminent, my husband (Type I diabetic) enrolled in retiree “group” health insurance available through his former company … he pays the entire cost of premium ($850/month) … we grabbed this coverage since there was no exclusion for pre-existing condition. Could I be excluded from stimulus-pkg subsidy if I’m eligible for coverage under my husband’s plan?
I was laid off the end of February, I paid the full amount of Cobra in March and my employers insurance affiliate has sent me a statement for April also in the full amount. I had communicated with them and they indicated that they were still looking at getting the paperwork for the stimulus, and that was weeks ago. If my employer snoballs or simply refuses to cover the 65%, is there any form of reprecussion I have to insure they comply. I mad well under $150,000, so I know I am eligible.
I’m so confused. I left my company on Feb. 28th. They don’t have an HR dept. So when I never received my Election, or any paperwork for that matter, I emailed the President of the company. He doesn’t have a clue… He finally sent me some copy of a letter the payroll company is sending out to me. I was able to log into their benefits page and it says my premium is due 4-1 with the 30 day grace period etc. When I go to what my premium is, it’s the total amount. No 60-65% difference. It makes me so mad to go through all this to have to go to the President and say “hey what about the stimulus?” Now what do I do?
Great information. Thank you. I have a question regarding the start of the Cobra Stimulus package. My last work day was on August 31, 2008. I feel my first day of termination of employment would be September 1, 2008 and that is when my Cobra became effective. I have spoken to the Dept. of Labor and they say I am not eligible. I think that is absurd. I want to go ahead and submit the application anyway. What is your opinion and interpretation of the bill and timeline? Thank you for your time.
Cindy
if I take my severence pkg and take advantage of COBRA, will my husband, who is presently insured thru me, still on the new plan or would he need separate coverage?
I lost my job Feb. 20th, 2009. The company gave me one week of medical coverage. I was shocked because I work there 8 years. I need medical assistance. I have high blood presure,arthuritis I can’t afford medical coverage.
I lost my job Feb. 20, 2009. The company gave me one week of medical coverage. Short notice, I could not schedule doctors appointments,physical,mammagram I needed to follow up specialist since I had surgery etc. I have high blood pressure,arthritis. Applied for medicade and was turn down beacuse of my income. I made less than 40,000. What can I do, single it’s been very difficult, high rent. Collecting but I don’t have much left after paying my bills.
I was laid off from my job of 2 1/2 years back in Oct of 2008. They offered me Cobra but I didn’t take it because it was too expensive and I thought I would be getting insurance thru my new part time job I took on. I have not yet got insurance though. Can I still get Cobra thru my previous employer with the government paying 65% now that I know this is available and was my lay off during the correct time period to qualify? Thank you..
I used to work for BCBS of Tx. I applied for the Cobra after the stimulus package was approved. I called BCBS several times and I was told that they will be sending the paperwork on April 14, I did no receive any papers so I called them again and I received the application to be sent back to BCBS on April 23. I sent application back on May 11, I called them to verify they rcvd application and it was received on 5/19 they told me that now I will be receiving a bill and until the bill is not pay the policy is not in effect. Well, on June 10 I received a ltr dated 6/4/09 asking for a payment of 658.28 I called them to ask why I have to pay that much when I’m a candidate for the stimulus package and I was told that I need to pay retroactive since March/09. I asked why that I need to pay 4 months that I did not receive the benefit and I was told that’s the only way I can get the Cobra. I want to know if you know if this is correct. The stimulus package is only for 9 months and if this is true, that means that i will be paying 4 mo. for free because i was not even able to buy my prescriptions because I could not afford them, and if I pay 658.28 then I will only have 5 more months of coverage. Does this sound right to you? I will really appreciate your response, I don’t know who to ask or what web sites to visit to get more information. Thank you
I was laid off in February 2009. I am making the monthly payments to COBRA. I am very grateful that the Federal Government is paying 65% of my monthly health beneifits. However, if I am still unemployed in December 2009 (when the 65% assistance ends), I will have to pay the entire monthly cost of $1,256.93 — I can not afford this amount and will have to cancel my health benefits. Can President Obama extend this assistance??? Please advise. Thank you
My husband has been out of work for 10 months and his unemployment is coming to an end but there is some sort of extention, but that’s not my question. My question is, “Is there any plan to extend the cobra benefit plan?” I do not have the option of insurance where I work, and my husband has health issues. Do you have any idea? Maybe now that they have helped out the banks and they are paying the monies back, maybe he can actually help out the PEOPLE of this country!!!!
My husband had a heart attack in Oct 2007 he is 53 now. He was terminated in May 2008 and went on COBRA. His 18 month is now up and COBRA is increasing the rate from $377.00 to $554.00 a month. He is not able to go on Medicare until May 2010. The Stimulus Plan for COBRA from what understand doesn’t include us and I don’t know why. We need it more than anyone. He doesn’t quailfly for any assistance.
I am thinking about not having any insurance even though my husband is ill. It’s a shame the government doesn’t help those who have worked hard their wholelife and when something happens to them they are denied any assistance. We need help if anyone knows something that we don’t. We would very grateful.
I was laid-off as a staff reduction on March 17, 2009. I was offered a 12-week severance package with employee rates for health insurance for the duration of the severance period. On June 18, 2009 Cobra rates began and the subsidy was applied to the premiums that I had to start mailing to my former employer. I was expecting for the subsidy to last through March 17, 2010. I received a letter telling me that an error was made calculating the 9-months subsidy and that the subsidy would end on December 17, 2009. I feel that I am being cheated out of three months of the subsidy. Please let me know if there is anything that I can do to make my former employer give those three months of subsidy back. I have already posed this question to the benefit coordinator. Her reply was that the subsidy is only good for the first nine months after the qualifying event and that the severance period was part of that. Is this correct? I feel like I’m being penalized by my former employer on this issue. Please reply.
My position was eliminated at my company. I have been offered COBRA. I do have a spouse with insurance but to add me to his plan is much more expensive than the ARRA subsidy. The rules include a spouse insurance coverage on their site but can you clarify this? I am thankful for an additional insurance option but would like to stay independant with my choice in case he loses his job and since it is less money out of my pocket for the ARRA.
Many thanks for your helpful article.
My husband was laid off – and possibly qualifies for the reduction in premiums. He can get on my insurance for $1200 a month. His reduction COBRA amount is $330. His full COBRA amount is $660 per month. Technically since he qualifies for another plan, does he have to take it or can he get the reduction premiums? Or would he have to pay the full price?
is the cobra stimulus going to be extended past the 9 months?
Anyone know the answer to Ron’s question,because I am also interested.