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.
My question is related to qualification of the cobra subsidy. I was given notice of a workforce reduction today. My last day of employment is December 11, 2009. I am offered 4 weeks severence with an end date of January 8, 2009. I am eligible for cobra. Current cobra subsidy eligibility period is through December 31, 2009. What date does the government consider with regard to layoff -last day worked or last day paid? Will I be eligible for the subsidy?
My question is, I have to resign from my job (12/31/09) because of a student teaching requirement for my degree program. My employer do not offer parttime evening work. Will I qualify for the Cobra subsidy.
I was released as of 2/29/09 and my severance packaged included full payment of health insurence for the months of March – May and I had to pay 50% of the cost for the months of June – August and after that time i would pay 100% of the cobra cost. My question is, when should the 65% stimulus start? My thought is that it should begin in June when I am required to start paying but my company started it in March and that only gave me a 6 month break and not the full 9 months.
I was recently laid off by a non profit organization. Will I qualify for the Cobra Mecical insurance Stimulus? How does the 65/35 affect the non profit when it comes to the tax credit?
Does the 65% COBRA reduction apply as well if your former employer is a non profit religious organization?
The COBRA subsidy, eligibility period has been revised. For further info read, COBRA : Subsidy Eligibility Period Extended.
Wondering – I retired 8/1/08 and my 18 months of Cobra expired 1/31/2010. Would I receive an extension and for how long? If anyone knows I would appreciate a comment. Have been looking for insurance but they are VERY selective and I may be turned down for no good reason. Need Ind health care for 2 years.
Thanks
Kurt read, COBRA: Subsidy Eligibility Period Extended in the latest headlines above.